Bonds provide the investor with a steady and predetermined stream of cash inflows. This is not true for stocks, since even dividend rates for stocks change very frequently. Also, the assessment of risk for bonds is easier than for stocks due to the availability of grades (e.g., AAA) by rating agencies such as Moody and S&P. Thus, bonds allow for easier financial planning and help in risk management of a diversified portfolio.
Actually, there's such a thing as a zero-coupon bond. They pay all their interest at the date of maturity, which is usually far in the future--10 years or more.
I like buying municipal bonds issued in my state--they're completely free of state taxes.
Stocks and bonds can be purchased via one's bank. There are also companies that offer online trading where one can buy stocks and bonds. These include Hargreaves Lansdown, for example.
monkeys
That would be asking bond holders to take stockholder type risks with bond holder type returns. No one would buy such bonds.
Online Investing
True
Stocks and bonds can be purchased via one's bank. There are also companies that offer online trading where one can buy stocks and bonds. These include Hargreaves Lansdown, for example.
monkeys
That would be asking bond holders to take stockholder type risks with bond holder type returns. No one would buy such bonds.
Guaranteed return upon maturity
Online Investing
Bonds and stocks serve different purposes to the investor, and ideally you should buy both. Advantage of investment-grade bonds: the issuer is committed to paying you a stated amount of money on a stated date. The disadvantage is your return is limited to the agreed-on amount. Advantage of stocks: potentially unlimited return on your investment. The disadvantage is there are no guaranteed returns with stocks; you could potentially lose everything you invested in them. Speculative-grade bonds, or "junk bonds," have a risk/reward system more like stocks than investment-grade bonds.
You can buy bonds from the government or you invest in the stock market. Pick some specific stocks that you like and based on your risk level. Many stocks also pay dividends so you can make more money off of your stocks.
True
online inversting
Most investors tends to buy corporate bonds cause its risky thus the rate of return are grater than those of government bonds most of the time, while bonds are much more safer than most stocks.
an open mutual fund
i belive it is online investing