Bonds : Getting To Know Bonds
Business owners that lack the capital for expansion often turn to the bonds market for additional funds. Not restricted to just companies and organizations, governments are one of the chief bond issuers in the world. The purchasers of these bonds can extend from individuals to banks to insurance companies.
The coupon, is how the possessor of the bond gets paid. And the coupon is essentially the interest rate paid to the investor over a specific amount of time. Because we know the amount of interest paid from the beginning,bonds are also accepted as fixed income rates.
Why trade bonds?. Bonds have one very clear-cut benefit over the stock or the forex trading market. When you buy a bond you are investing in debt rather than equity (stocks). As such, should the issuer ever face chapter 11, bond owners always get paid before shareholders.
Bonds are frequently a more secure investment than stocks, futures, forex and commodities will ever be. That doesn't mean there are no risks in the bonds market. There are. Bonds are usually marked by their cautious nature. Bonds offer security but not the kinds of profits offered by other investments. Due to its careful personality, the bonds market is routinely disregarded.
While Japan issues the second principal amount of bonds in the world, United States issues the most. While not as sizable as the stock or currency market, the bond market did see as much as 80 trillion trading for the year 2008.
There are some disadvantages when it comes to bonds however. Only those that invest substantial amounts see big profits. Secondly, it may not be easy selling your bond should you intend to give it up. Unlike the currency market, where 90% of orders can be sold in a second. Finally, you cannot trade bonds like you would forex online.
To summarize, bonds are still a stable investment that should be considered by the Malaysian public. Those of you in Malaysia that are on the careful side should feel comfortable with the bonds market. Just don't look ahead to pay-outs like you would get in the stock market. - 23199
The coupon, is how the possessor of the bond gets paid. And the coupon is essentially the interest rate paid to the investor over a specific amount of time. Because we know the amount of interest paid from the beginning,bonds are also accepted as fixed income rates.
Why trade bonds?. Bonds have one very clear-cut benefit over the stock or the forex trading market. When you buy a bond you are investing in debt rather than equity (stocks). As such, should the issuer ever face chapter 11, bond owners always get paid before shareholders.
Bonds are frequently a more secure investment than stocks, futures, forex and commodities will ever be. That doesn't mean there are no risks in the bonds market. There are. Bonds are usually marked by their cautious nature. Bonds offer security but not the kinds of profits offered by other investments. Due to its careful personality, the bonds market is routinely disregarded.
While Japan issues the second principal amount of bonds in the world, United States issues the most. While not as sizable as the stock or currency market, the bond market did see as much as 80 trillion trading for the year 2008.
There are some disadvantages when it comes to bonds however. Only those that invest substantial amounts see big profits. Secondly, it may not be easy selling your bond should you intend to give it up. Unlike the currency market, where 90% of orders can be sold in a second. Finally, you cannot trade bonds like you would forex online.
To summarize, bonds are still a stable investment that should be considered by the Malaysian public. Those of you in Malaysia that are on the careful side should feel comfortable with the bonds market. Just don't look ahead to pay-outs like you would get in the stock market. - 23199
About the Author:
An Overview on Bonds and The Bonds Market in the links mentioned. The Author has been investing online for over 7 years. When Prema De Silva is not trading currencies, she expands her knowledge on online investing and oversees the operation of a popular personal Finance trading website.
posted by X - Men @ 10:24 AM
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