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.

Bonds have become an ideal investment instrument for investors who do not want to put all of their eggs in one basket.

Bank deposits, Mutual Funds, Stocks, Futures and Options–investors always seek new investment avenues.

Bonds are a financial instrument issued by companies to raise capital and fund their business operations. The company is called the issuer, and the buyer is called the investor or bondholder.

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.

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.

A bond is a debt instrument which allows investors to lend money to a corporate or government entity for a defined period. In exchange the investors get a fixed return of interest called a coupon throughout the bond’s life.

foreign currency exchangeable bonds (FCEB) are regulated by Foreign Currency Exchangeable Bond

An Angel bond is the opposite of a fallen angel, which is a term for a company’s bond which has faced a negative impact due to increasing debt.

The coupon rate is the annualized interest amount. It is the percentage of the face value that a bond pays in one year.

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.