A bond is a debt security that entitles an investor to a guaranteed income. The investor's profit may consist of coupon payments — periodic payments for the use of the loan. Or in the form of the difference between the purchase price and the nominal value of the bond at the time of its repayment.
Bonds are actually promissory notes. They are issued by an issuer - a company (or a state, it can also be an issuer) that needs money.
People buy bonds and thus lend their money to this company, hoping to get a certain income. The full amount, timing and amount of payments of this income (if several payments are planned) are usually known at the time of purchase. The ability to estimate your benefits in advance is what makes a bond different from other securities.
- What are bonds;
- Terms and definitions;
- Types of bonds;
- How does a bond differ from a stock;
- What is the advantage of a bond over a deposit in a bank;
- How to choose a bond;
- What is the danger of bonds;
- How to make money on bonds;
- Pros and cons of investing in bonds;
- The main risks of investors when buying bonds;
- Basic strategies for investing in bonds;
- How to choose the right bonds for investment;
- How to buy bonds correctly;
- How to sell bonds.