Like us, sometimes companies and Govt also needs money for their expansion or various projects. Then have to take loan. The amount they need is too high that an average bank can lend. Hence, they issue bonds in public market for individual or Institutional investors to buy. By buying bonds you lend your money to the company or Govt. who in turn, assures you a fixed yearly / half yearly return and back your capital after certain fixed period. You will get a certificate for the proof of your investment.
A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.
A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.
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