Final answer:
In business studies, corporate bonds are a common method for companies to raise capital and are usually tradable. However, smaller or less-known firms' corporate bonds may not be traditionally lent as often due to credit and liquidity risks.
Step-by-step explanation:
The subject of whether certain types of securities are traditionally not lent pertains to the field of corporate finance, which can be considered a part of business studies. In traditional business and finance practice, corporate bonds are indeed a common instrument for companies to raise capital. They are issued by firms and represent a financial contract where the borrower (the company) agrees to pay back the borrowed amount along with interest at a specified rate over a set period of time.
Although there's a perspective that firms use banks for smaller loans and issue bonds for larger sums, this isn't a strict rule. In some cases, banks make large loans to firms through syndicated lending or other arrangements. Sometimes, even smaller or less known firms may issue bonds if it meets their financial strategy and market conditions are favorable.
Typically, securities like stocks and bonds of various kinds including municipal, state, and Treasury bonds are commonly traded and lent in the financial markets. But it is notable that some forms of debt, like corporate bonds from smaller or less-known firms, may not be as frequently lent or traded as those from larger, well-known corporations due to factors like credit risk and market liquidity.