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Why is there a market for bonds?

Updated: 9/25/2023
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Q: Why is there a market for bonds?
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Why bonds are trading in market?

The bonds are traded in the market because of the P/E ratio of a company.


Can you buy a bond after it has been sold out on the primary market?

Bonds are traded both in the primary market, which is the initial sale of the bonds, and in the secondary market, which is the sale of bonds subsequent to the initial sale by the issuer or underwriter.


How might the federal reserve to an overheated economy or boom?

The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.


Is there secondary market for EE bonds?

no


What type of bonds cant be sold on the secondary market?

Bonds are traded between investors in the secondary market. However, unlike stocks, most bonds are not traded in the secondary market via exchanges. In the secondary market transactions, the bond does not have to be traded for its original issue price.


Define debt market?

The debt market is the market for trading debt securities. The debt market thus involves corporate bonds, government bonds, municipal bonds, negotiable certificates of deposit, and various money market investments. The debt market also includes individual loans bought from lenders and often packaged together in large amounts.


When the Fed buys government bonds and other securities on the open market?

Open-market operations


Where are stocks and bonds bought and sold?

2 ways. An Exchange (e.g. NYSE) which is a centralised market or Over-The-Counter (OTC) which is a decentralised market. Bonds usually trade OTC.


What is the muni bond market, and does it have anything to do with finance?

The municipal bond market is related to the investment in government bonds. You can find out a lot more information about municipal bonds by checking out Investopedia.


What would the effects be if the Feds sold Treasury bonds on the open market?

If bonds are sold then the supply of money decreases.


Time deposits consist of?

CD, Money market, bonds


The fed buys 5 billion worth of treasury bonds on the open market what effect does this have on the money supply?

The Fed sells $5 billion worth of Treasury bonds on the open market.