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.
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.
NCDs are unsecured debt securities. Investment in them could offer good diversification to those who also invest in equities. NCDs of investment grade issuers are also a secure form of investment.
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.
When the government or corporate requires funds, they may consider issuing bonds. They are financial instruments which raise funds from the general public for a specific period.
SLBM refers to the Stock Lending and Borrowing mechanism that allows a trader to borrow shares that they do not already own or lend stocks and shares that form a part of their portfolio.
A Fallen Angel Bond is an investment-grade corporate bond that was originally issued with an investment-grade rating but has since been downgraded to a high-yield (non-investment grade) rating due to adverse circumstances at the issuer.
When the government or corporate requires funds, they may consider issuing bonds. They are financial instruments which raise funds from the general public for a specific period.
The bond market is where new debt securities are issued and traded. The bond market can be subdivided into two types - Primary market and secondary market.
The SLB Mechanism is a system where a trader can borrow shares that they don’t own. The associated SLB transaction has a rate of interest and a fixed tenure.
Bonds have become an ideal investment instrument for investors who do not want to put all of their eggs in one basket.
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.
Sachin has recently started investing in the stock market but doesn’t know too much about the factors that influence the price movement
Investors utilise the capital they have saved over time to start their journey in the Indian financial market.
Businesses are inherently risky. It is the one thing that unites them across sectors and geographies. While organizations can't run without risks, they can mitigate them.
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