List of Bonds Articles

Though equity and debt securities are issued to raise money, they differ by structure. Unlike equity, debt securities have prespecified principal repayment and coupon payment schedules.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

As businesses grow, so do their capital needs. Filing for an IPO is one way in which companies attempt to infuse massive funds into their company. An IPO or Initial Public Offering is the process by which a privately held company or a government entity raises money from the open market.

When experienced investors choose the stock market instruments, they invest in multiple asset classes beyond equities. Although certain assets can yield higher returns, they swear by diversifying their investments within the stock market such that they are profitable in case one asset class goes through a bear cycle.

The government issues these bonds to raise debt money from the general public. It raises this money to meet its various expenditure requirements.

Almost every experienced investor diversifies and invests in various asset classes. Although they may start with equities, they do not retrain their investments to trade in stocks.

Investors utilise the capital they have saved over time to start their journey in the Indian financial market.

Some prefer to invest in simple financial instruments such as Mutual Funds, while some look towards high-risk, high-reward instruments such as Equity.

Bonds affect the stock market because stock prices tend to rise as bonds fall, and vice versa. Bonds compete with stocks for the investor's dollar, as bonds are often considered safer than stocks.

A financial market facilitates the connection between fund seekers and investors. Mainly, there are four types of financial markets: Stock market, bond market, derivatives market, and currency market.

The coupon rate (also called nominal yield) is the annual coupon payments paid by the bond issuer relative to the bond's face or par value.

People invest in two of the most widely invested asset classes: Equities and Debt. While they may start their investment journey with equities, they tend to diversify into debt to earn regular income in the form of interest.

Bonds have become one of the most effective financial instruments to offer regular income to the holder without a massive risk of losing the principal amount.

Sachin has recently started investing in the stock market but doesn’t know too much about the factors that influence the price movement

A Callable bond is a type of bond or debt security that allows the issuer of the bond to retain the privilege of redeeming it at some point before the date of maturity.