The companies and the governments issue these bonds to fund their day-to-day operations or simply to finance their projects. When someone purchases a bond, he/she is going to loaning the money for a certain period of time to the issuer. In the return, the bond holder who is going to receive the loan amount plus the interest payments.
To Start Investing in the Initial Offering of these Bonds, An Invest Must Do These:
- Read the full prospects for all of the relevant information which is pertaining the issue.
- The investor is supposed to fill out the application form for the submission to the one of the bankers to the issue.
Regarding the bond to be traded in the secondary market, the usual process of opening an account with the broker and buying/selling through the broker should be pursued.
|What Are Bonds?|