People work hard to earn money for living. They use the money to pay all their bills and expenses. What will happen next if they have paid their expenses but they still have amounts of money left? In this situation, people usually will choose to save their money or invest it on something promising. For your information, there are several types of investments you should know: property, bonds, short term deposits, and shares.
Bond is like an IOU usually issued by a company or a government. To get bonds, you need to give your money to government or company for certain period. They promise you to give certain interest rates and will re-pay you regularly on maturity. Bonds are issued as evidence that you already invested your money. Bonds lock your money away during certain period or they can be traded too sometimes. This investment suit you who have massive amounts of money to be invested and it is not a good short term investment. That’s why small investors are rarely investing their money directly in bonds.
One kind of bond you may know is finance company debentures. But this bond usually is not be able to be traded. The risk of this investment varies one to another.
No comments:
Post a Comment