Bonds

Investment Bond is an investment instrument that is offered by life insurance companies. Investment bonds are also known as insurance bonds. They are long-term, tax-effective investment options. Investment bonds are one of the most popular investment products for financial advisers to sell. The investment is provided in the form of ...

Treasury bills are very safe short-term investments issued by the federal government and some provinces. These are also known as T-Bills. Treasury Bill is a negotiable debt obligation issued by a government. Treasury bills are impotent money market instruments. These are short-term government securities, which pay no fixed rate of ...

Corporate bonds are longer-term debt instruments issued by companies to raise money. It is a debt security issued by a corporation and sold to investors. Corporate bonds are issued generally with a maturity date at least one year after the date of issue. Corporate bonds, which have a short-term maturity, ...

Government bonds are basically fixed income security type. They are absolutely risk free. Investments in these bonds are safer than investing in the stock market. The government bonds of the developed countries are generally regarded as the more secured ones than the developing or the underdeveloped ones. The concerned governments issue ...

Stock Funds, also known as Equity Funds, can yield higher returns, but pose greater risks. Stock mutual funds invest pooled amounts of money in the stocks of public companies. Stocks represent part ownership, or equity, in companies, and the aim of stock ownership is to see the value of the ...

An Investment Company operates a Mutual Fund. The Investment Company pools shareholder or unit holder funds and invests in various securities. It raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities that meet the investment objectives of the fund and distributes the profits. ...

1. Security Point of View (i) Secured Debentures (a) Fixed Charge: A fixed charge is created on certain specified assets generally immovable such as land and building, plant and machinery, long term investments and the like. So it is equivalent to mortgage. When the charge is fixed, the company can only deal ...

Meaning A Debenture that is issued to the holder with an option to get it converted into the stock or shares from the issuing company as an alternative of taking the repayment of loan, but it does not include any accrued but unpaid interest thereon. These Debentures and bonds usually offer ...

Meaning When a Company desires to borrow a considerable sum of money for its expansion, it invites the general public to subscribe to its Debentures. A debenture is a certificate issued by the company acknowledging the debt due by it to its holders and is issued by means of a prospectus ...

Zero coupon bond is a bond that generates no periodic interest’s payments during its life time. Zero coupon bonds are at a deep discount from their face value. The holder of a zero-coupon bond only receives the face value of the bond at maturity. When a zero coupon bond matures, ...