Search results for: “bond”
A bond is a type of security (investment that trades easily in the market) where you loan money to an institution in return for interest payments from that institution, and the institution has to pay you back at a later date.
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What is Preferred Stock?

…Many investors like this fixed dividend because they know the exact amount they are going to get each dividend payment. And it resembles the coupon payments of a bond. But…

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What is a Bond?

bonds is called an Issuer. When you buy a bond, you are called a Bondholder. There are three primary components to a bond. The first is the Face Value. The…

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The 3 Main Bond Components (Infographic)

same amount as the face value, the bond is called a Par Bond. When you buy a bond and pay more than the face value for it, the bond is…

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What is an Interest Rate?

When a person or institution borrows money, in either loan or bond form, there is a cost associated with borrowing this money. An Interest Rate determines the amount of money…

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What is an ETF?

…a mutual fund. Both an ETF and mutual fund are funds that own a portfolio of assets, such as stocks or bonds. So both an ETF and mutual fund offer…

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What is the Debt Ceiling?

…money to pay for bills such as paying social security checks, medicare expenses, military salaries and interest on US Treasury bonds. In order for the debt ceiling to be raised,…

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What is a Bond Coupon?

coupon is the interest rate on the bond. It determines the interest or amount of money the Issuer pays you each year until the bond matures. To calculate the yearly…

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What is a Market Maker? A Trading Day Concept

What is a Market Maker? In order for market participants, such as investors, to buy or sell a stock or bond there must be somebody whose willing to trade with…

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What is a US Treasury Bond?

A US Treasury bond is a bond issued by the United States Government. When the US Government needs to borrow money to pay its obligations, such as funding federal programs…

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What is a Municipal Bond?

What is a Municipal Bond? A Municipal Bond is a bond that is issued by a state, city or other government entity. These government entities sell bonds to investors when…