Bond - a way to earn additional income

bonds - securities, certifying the fact of the loan by the issuer from an investor who has the right to regular dividend fixed income and after maturity - the sum of the nominal value.The economic essence of these bills is similar to lending.We can say that the bond - a debenture received by the investor from the borrower in exchange for his money.

Companies issue securities, attracting the flow of financial resources for its development.Each of them has a different value and favorable conditions.On this basis, it can be concluded that the buyer pre-acquainted with the future income and a legal entity with its costs.The process of transferring creditors' rights is maximally simplified, and in the design of the collateral is not necessary.Mainly the purchase of securities has an average or long duration - from one to thirty years.Issuers are beginning to issue bonds in circulation when they can afford to take money on credit.At the same time they must have a predictable future revenues, due to which the debt will be returned on time, and be strong economically.

bond issue carried out on the need for the borrower to obtain additional material means for carrying out various social programs, modernization of the production process or the introduction of innovative technologies.There is a significant detail, according to which the distinguished stocks and bonds.It is a stable income received by the investor from the denomination for a certain period of time and the loss of its value at maturity.Another important detail is that the owner of the bond only finances the activities of the issuer, won a total remuneration, but does not have the right to participate in management.The securities have a fixed income, which is indicated on the form of a special certificate.Interest calculation of funds called the coupon rate.It is floating or fixed, depending on the type of bonds.It may be special coupons with which pay interest annually or quarterly, depending on the conditions of release notes.The income thus obtained is called coupon bonds.

His example is a well-known bank deposit.Trading in bonds and they have many types and classifications.Therefore, each case is best considered, focusing on the list of securities law fixed a certain state.Members are asking: "Where to buy bonds?"This can be done in several ways: buy on the OTC trading through a bank, an investment fund or brokerage firm.For direct acquisition of securities must be addressed in any stock exchange.Keep access to the purchase is possible, with a special account and trading platform.For a wider perception of this topic I recommend to familiarize with the fact that this assessment bonds.