Bonds: What Are They?
Bonds are financial instruments representing a credit: the holder of a bond acquires the right to receive from the issuer one, or a series, of cash flows distributed over time.
In this sense, the difference between shares and bonds is clear: a share represents a right to participate in the life of a company, both by voting and by sharing in profits, while a bond is an e https://urzadzajzpasja.pl/ https://dlabiznesmena.pl/ https://przewodnikmodowy.pl/ https://remontibudowa.com/ https://zaskakujacakuchnia.pl/ https://polskiewyprawy.pl/ instrument that day one defines, in terms of cash flows, what the holder is entitled to and what the debtor is obliged to, but does not give the holder any other rights.
Among the Bodies, the Treasury and the other State agencies stand out, in addition to the supranational bodies while among the private ones the commercial companies stand out. Bonds can be listed on the stock exchange, but most of the trading is concentrated with wholesalers, or market makers, or even primary dealers: their business is to guarantee the liquidity of the bonds, providing investors with continuity a price and a minimum negotiable quantity.
We can characterize bonds in various ways: Based on the type of issuer: public or private Based on the type of remuneration offered to the subscriber: which can be determined based on a fixed percentage of the nominal value (fixed coupon bonds), or it can be variable and therefore indexed to an external parameter (variable coupon bonds) ;
or it can be implicit in the discounted price that is applied at the time of issue (zero-coupon bonds) Based on the issu