What are corporate bonds primarily issued for?

Corporate bonds are primarily issued to provide funding for operating expenses. When a corporation needs to raise capital, it can issue bonds as a way to borrow money from investors. This allows the company to gather the necessary funds to invest in its operations, such as expanding facilities, purchasing new equipment, or covering day-to-day expenses.

Investors who buy these bonds essentially lend money to the corporation in exchange for periodic interest payments and the return of the bond's face value upon maturity. This method of financing is attractive for many companies because it can offer lower interest rates compared to bank loans, and it does not dilute the ownership of the company as issuing new stock would.

The other options do not align with the primary purpose of corporate bonds. Personal mortgages are loans for individuals buying homes, not related to corporate funding. Ensuring liquidity in stock markets pertains to the trading of stock, not the issuance of bonds. Generating dividends is specific to stockholders, while bondholders receive interest, not dividends. Thus, issuing corporate bonds is fundamentally about securing the necessary capital to support business operations.