Article

Bond
June 07 , 2012

The central idea of bonds or debt is lending. You lend your surplus cash to someone who has a need for it. Often, it is companies and governments that seem to be in perpetual need for cash. So they issue a certificate (sometimes called paper) in return for your money. They pay an interest, and (hopefully!) the principal too, sometime later.

Bonds have a fixed return, in the form of interest. If the borrower does well with the money you lent, good for him! But its not going to get you anything extra. If he messes it up, though, you have a right to show up and take charge of whatever he has. He gets nothing till you are compensated first. Thus, bonds are less risky than ownership (shares), but returns are capped too.

Fintotal Knowledge the best place to learn more on personal finance.

The language is simplified and written specially for non finance background individuals.


Explore more in a easy manner.

Table of Contents

Table of Contents

  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling