Bonds

Stocks provide ownership of a company as well as a share of any cash dividends (‘Dividends’). Bonds allow you to participate in lending to a business but do not give you ownership. Instead, the buyer of a Bond receives periodic payments of Interest and Principal. What are the similarities between bonds and stocks? Simply said, […]

Mutual funds invest in a variety of products, pooling money from other investors to invest in a variety of securities. Bond funds invest in fixed-income assets such as US Treasury bonds, municipal bonds, corporate bonds, and international government and business bonds. Bonds are issued by these companies to raise capital (money) for projects or to

Simply said, stocks are shares of a company that reflect a portion of its ownership. You become a part-owner of the company when you buy a stock. Bonds, on the other hand, indicate debt, implying that you are basically lending money that must be repaid with interest. Companies can raise money by selling stocks and

When governments and enterprises need to raise funds, they issue bonds. You’re giving the issuer a loan when you buy a bond, and they pledge to pay you back the face value of the loan on a particular date, as well as periodic interest payments, usually twice a year. Bonds issued by firms, unlike stocks,

The two main asset classes that investors use in their portfolios are stocks and bonds. Stocks are similar to loans made to a company (a corporate bond) or other organization, whereas bonds are similar to loans made to a company (a corporate bond) or other organization (like the U.S. Treasury). Stocks are generally thought to

A bond is just a debt that a firm takes out. Rather than going to a bank, the company obtains funds from investors who purchase its bonds. The corporation pays an interest coupon in exchange for the capital, which is the annual interest rate paid on a bond stated as a percentage of the face

Bonds are purchased and sold in massive amounts in the United States and around the world. Some bonds are easier to purchase and sell than others, but that doesn’t stop investors from doing so almost every second of every trading day. Treasury and savings bonds can be purchased and sold using a brokerage account or

In the primary markets, governmental agencies, credit institutions, corporations, and supranational institutions issue bonds. Underwriting is the most popular method for issuing bonds. When a bond issue is underwritten, a syndicate of securities companies or banks buys the full issue of bonds from the issuer and resells it to investors. The security firm is willing

A bond, like an IOU, is a debt security. Borrowers sell bonds to investors who are prepared to lend them money for a set period of time. When you purchase a bond, you are lending money to the issuer, which could be a government, a municipality, or a company. In exchange, the issuer promises to

Supply and demand, time to maturity, and credit quality are the three main factors that impact bond pricing on the open market. The influence of a call feature on bond prices should also be considered by investors. What does a bond of $10,000 imply? If the defendant’s bail is set at $10,000, he or she