Investing money in liabilities

Investing in bonds is relatively safe way to multiply your capital. Bonds are form of a loan taken out by organ, institution or entity issuing them. Thanks that the bondholder gets a constant percentage profit. When buying bonds, we immediately decide for how long we want make loans to the issuer. The bonds are securities, obliging the institution what entered them on the market for periodic payment of a percentage of the value of the lender's bonds, and after end of the credit period - the entire obligation monetary, which confirms Roman Ziemian.

In the economy, obligations perform pair significant functions: loan, investment, monetary, circulation. The loan function proves that that the issuer receives necessary for trading and flourishing funds. Function investment refers to making it possible investing by the bondholder the surplus money and multiplying private capital. We understand the financial function as chance transfer of the ownership of the bond from holder to its creditor. In this way, bonds be able to equal the current currency. The circulation function allows transfer ownership of the bond from one person to another, together with all obligations on the site of the issuer.

JanNovak

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