Investment bonds definition,michael jordan vs lebron james stats at age 28,minnesota vikings cheerleaders - Downloads 2016

Published : 24.07.2013 | Author : admin | Categories : Online Football Betting
What it is: A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital.
Why it Matters: Bonds and other fixed-income securities play a critical role in an investor's portfolio. Launched in 2009, InvestingAnswers' mission is to help individual investors build and protect their wealth by providing 100% unbiased investment ideas and education.
In corporate finance, a credit rating is a "grade" assigned to a bond, bond issuer, insurance company, or other entity or security to indicate its riskiness. Only bonds with a rating of BBB or better are considered "investment grade." BBB bonds are considered to be suitable for investment by institutions. Treasury Bonds are not rated because they are backed by the "full faith and credit" of the United States government. Why it Matters: Bond ratings have huge influence on the price and demand for certain bonds.
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.

For example, there are bonds that can be redeemed prior to their specified maturity date, and bonds that can be exchanged for shares of a company. Owning bonds helps to diversify a portfolio, as the bond market doesn't rise or fall alongside the stock market.
They are considered the safest of investments because the government has the power to levy taxes in order to pay its debts. They simply mean there is more risk associated with an investment and thus more potential for higher returns. These ratings also can be assigned to bond issuers, insurance companies or other entities or securities to indicate riskiness.
They are considered to be the safest of investments because of the fact that the government has the power to levy taxes in order to pay its debts. They simply mean there is more risk associated with a bond and thus more potential for higher returns.
In most cases, the investor will receive regular interest payments from the issuer until the bond matures.

More important, bonds are generally less volatile then stocks, and are usually viewed as a "safer" investment.
In fact, many income investors actively enhance their returns by dividing bonds into sectors based on certain characteristics such as credit rating, yield, coupon, maturity, etc. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. This is why downgrades (or rumors of downgrades) in an issuer's credit rating can have a significant impact on its bonds and on the market or industry.

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