A bond is a debt security, in which the issuer owes the bond holders a debt and, depending on the bond, is obliged to pay interest and/or to repay the principal at a later date, termed maturity. It is issued for a period of more than one year and usually by governments or big companies in order to raise capital. The corporation receives the money from selling the bond to raise immediate money. It repays this money to the buyer or pays interest periodically. There are many types of bonds.
The bonds market is one of the biggest in economy and moves many trillions of money each year.
No comments:
Post a Comment