Bonds and Treasuries

A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different from stocks and bonds, although all three are types of investment. Below are descriptions of the different types of investment options for small investors and entrepreneurs.

Debentures and Shares
When you buy shares, you become one of the owners of the company. Your fortunes rise and fall with that of the company. If the stocks of the company soar in value, your investment pays off high dividends, but if the shares decrease in value, the investments are low paying. The higher the risk you take, the higher the rewards you get.

Debentures are more secure than shares, in the sense that you are guaranteed payments with high interest rates. The company pays you interest on the money you lend it until the maturity period, after which, whatever you invested in the company is paid back to you. The interest is the profit you make from debentures. While shares are for those who like to take risks for the sake of high returns, debentures are for people who want a safe and secure income.

From an investor's perspective, bonds, contrary to stocks, have steady and predetermined cash payments ending with a known repayment of principal. Also, bonds are usually rated by various rating agencies for the probability of issuer default. So presumably, it is easier to assess their investment risk as compared to stocks. Finally, bond holders take priority over stock holders when bond issuers happen to be insolvent. These reasons are especially appealing for investors who want to secure a steady stream of payments and want to diversify/mange the risk in their portfolios. From an issuer's perspective, raising capital by issuing bonds involves paying regularly interest payments and returning principal at a determined date. None of these has to be done if a company raised capital by issuing stocks. However, interest expense lowers the effective tax rate for an issuer, and accounting professionals can use financial formulas to calculate the desired level of debt. They take into account such factors as prevailing market yields for simmlar debt, corporate tax rates, the company's rate of return on borrowed capital, and probably many more.

Redeemable debentures are those securities which are to be repaid within a stipulated period / maturity period. For instance, X co issued 9% 7 years $ 1000 Debentures. This issue of debentures has coupon rate of 9% per year and redeemable period of 7 years. The amount raised by issuing thses debentures are to be repaid within 7 years from now.

The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.

No. The ranking of creditors is dependent on many things...including the type of creditor it is... for example different bond holders (or lenders) have different priority to other bond holders, just by the terms of their bonds. (Stockholders by the way are never creditors...they are equity holders and actually closer to debtors). Payroll, Taxes and secured lenders have higher priority than others (the secured ones higher priority only to the money from the asset they are secured by, then any remaining due, if any, is a much lower level claim), and many more. In a personal BK, the same holds true, although there may be less classes.

Long-term corporate bonds are examples of capital market transactions. A capital market transaction occurs in the financial market in which stocks and intermediate, or long-term debt (one year or longer), are issued

1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders.

2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company.

3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.

Detailed answer here: http://financenmoney.in/types-of-share/

all treasury warrents ssued have a value on intrest after a time of good attempt to

administer them,in the 1800 treasury warrents issued where valid only 6 months unless a theme delayed and excuses craeted a delay,many lossed intrest and finances

on delay. a 5.00 1862 treasury warrent would not have much power after 6 months.

unless reasigne3d by order after issue.

Why do companies issue Warrants and Convertibles? You hear many arguments for issuing warrants and convertibles, but most of them have a "head I win, tails you lose" flavor. For example, here is one such argument: A company that wishes to sell common stock must usually offer the new stock at 10 percent to 20 percent below the market price for the flotation to be a success. However, if warrants are sold for cash, exercisable at 20 percent to 50 percent above the market price of the common, the result will be equivalent to selling common stock at a premium rather than a discount; and if the warrants are never exercised, the proceeds from their sale will become a clear profit to the company.There is something immediately suspicious about an argument like this. If the shareholder inevitably wins, the warrant holder must inevitably lose. But that doesn't make sense. Surely there must be some price at which it pays to buy warrants. Suppose that your company's stock is priced at $100 and that you are considering an issue of warrants exercisable at $120. You believe that you can sell these warrants at $10. if the stock price subsequently fails to reach $120, the warrants will not be exercised. You will have to sold warrants for $10 each, which with the benefit of hindsight proved to be worthless to the buyer. If the stock price reaches $130, say, the warrant will be exercised. Your firm will have received the initial payment of $10 plus the exercise price of $120. on the other hand, it will issued to the warrant holders stock worth $130 per share. The net result is a standoff. You have received a payment of $130 per share in exchange for a liability worth $130. Think now what happens if the stock price rises above $130. Perhaps it goes to $200. in this case the warrant issue will end up producing a loss of $70. This is not a cash outflow but an opportunity loss. The firm receives $130, but in this case it would have sold stock for $200. on the other hand, the warrant holders gain $70: they invest $130 in cash to acquire stock that they can sell, if they like, for $200. Our example is oversimplified- for instance, we have kept quiet about the time value of the money and risk- but we hope it has made the basic point. When you sell warrants, you are selling options and getting cash in exchange. Options are valuable securities. If they are properly priced, this is a fair trade- in other words; it is a zero NPV transaction. Managers often use similar arguments to justify the sale of convertibles. For example, several surveys have revealed two main motives for their use. A large number of managers look on convertibles as "cheap debts". A somewhat higher proportion regards them as a deferred sale of stock at an attractive price. The difference between the market value of the convertible and that of the straight bond is therefore the price investors place on the call option. The convertible is cheap only if this price overvalues the option. A convertible bond gives you the right to but stock by giving a bond. Bondholders may decide to do this, but then again they may not. Thus issue of convertible bond may amount to a deferred stock issue. But if the firm needs equity capital, a convertible issue is an unreliable way of getting it. Notice that convertibles tend to be issued by the smaller and more speculative firms. They are almost invariably unsecured and generally subordinated. Now put yourself in the position of a potential investor. You are approached by a small firm with an untried product line that wants to issue some junior unsecured debt. You know that if things go well, you will get your money back, but if they do not, you could easily be left with nothing. Since the firm is in the new line of business, it is difficult to assess the chances of trouble. Therefore you don't know what the fair rate of interest is. Convertible securities and warrants make sense whenever it is unusually costly to assess the risk of debt or whenever investors are worried that management may not act in the bondholder's interest. You can also think of convertible issue as a contingent issue of equity. If a company's investment opportunities expand, its stock price likely to increase, allowing the financial manager to call and force conversion of a convertible bond into equity. Thus the company gets fresh equity when it is most needed for expansion. Of course, it is also stuck with debt if the company does not prosper. The relatively low coupon rate on convertible bonds may also be a convenience for rapidly growing firms facing heavy capital expenditures. They may be willing to give up the conversion option to reduce immediate cash requirements for debt service. Without the conversion option, lenders might demand extremely high (promised) interest rates to compensate for the probability of default. This would not only force the firm to raise still more capital for debt service but also increase the risk of financial distress. Paradoxically, lenders attempt to protect themselves against default may actually increase the probability of financial distress by increasing the burden of debt service on the firm.

A municipal bond is a bond issued by a below-federal public agency. Such entities as cities, states and public hospitals issue them. The slick thing about munis is if you buy munis issued by an agency in your state, your earnings from them will be free of state taxes. The cheap answer to the second question is, "go to a municipal bond broker." While this is true, it's more complex than that. There are two ways you can buy these: as new issue, or in the secondary market. For new issue, Fidelity Investments is pretty good. Stoever Glass is big in the secondary market. Either way, munis are sold a little different than other kinds of issues: you open an account, tell your broker what you're looking for ($10,000 worth of AA-rated, or better, paper from New Jersey with a 4.5% coupon and at least a 2011 maturity date, for instance) and when some comes in they'll execute the transaction. What you'll wind up with is kinda pot luck...you could get Atlantic City Fire Department bonds, Point Pleasant School System debentures or Port Authority bonds.

A debenture is a debt security issued by a corporation that is not secured by their assets, but rather by the corporations credit. Bonds are lOUs between a borrower and a lender. The borrowers are generally public financial institutions and corporations. The lender is the bond fund, or an investor.

Corporate bonds are investments made to corporations that function much like certificates of deposit, except that they are not government-insured in any way (like with FDIC).

For example, if you pay $20,000 for a corporate bond for two years, with a 5% APR, then, after two years, they should pay you $22,050.

However, unlike with certificates of deposit, the government won't pay you back just because the corporation can't. They make up for that by offering a higher interest rate than CD's generally do, but they're paying for risk. As such, you should not put all your eggs in one basket; diversify your investments.

No, A debenture bond owner is just like any other bond owner. A debenture bond is an uninsured bond.

The owner of a bond is just lending their money to a company for a long-term period.

A bond is an example of a long-term debt. An owner of a company would be an example of an equity such as a stockholder (common, or preferred).

To find the federal tax rate at which the buyer would be indifferent between Muni bonds(which are tax free) and Corporate bonds(which fall under your tax bracket tax rate) you follow this simple formula: Corporate Bond Yield=(Municipal bond Yield)/(1- Federal tax rate) In this case you would solve for the Federal Tax Rate and get an answer of .25 or 25% http://luhman.org/Nts/Bond/140_Municipals.html

30/360 is the day-count convention used for corporate bonds.

Actual yield is nothing but the profit we gain out of an investment or transaction after deducting the taxes and expenditures.

Let us say you buy 100 stocks of XYZ today at $25 per stock which means you have invested $2500

After 4 weeks you sell them at $35 per share which means you get $3500

You may calculate the total yield at $1000 but that is not the actual yield. Let me explain how.

while buying you would have paid brokerage to your trader and also while selling. let us say the brokerage is 0.25% of transaction amount. i.e., $6.25 while buying and $8.75 while selling.

So now the net yield is $985

Also since you sold it in one month you are bound to pay a short term gains tax to the government. Lets assume the tax is @ 10% which means you have to pay 10% of your profit which is $100

so now the yield is $885

This $885 is the actual yield whereas $1000 is the total yield.

what is role foreign investers in Indian stock market

why it is used foreign investment Indian stock market

what is role foreign investers in Indian stock market

why it is used foreign investment Indian stock market

what is role foreign investers in Indian stock market

why it is used foreign investment Indian stock market

I got 98.00 for apex

someone who stands up for their country The official definition for the word patriot is "a person who vigorously supports their country and is prepared to defend it against enemies or detractors."

A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.

These types of bonds are attractive to both investors and issuers. The investors receive the safety of guaranteed payments on the bond and are also able to take advantage of any large price appreciation in the company's stock. (Bondholders take advantage of this appreciation by means warrants attached to the bonds, which are activated when the price of the stock reaches a certain point.) Due to the equity side of the bond, which adds value, the coupon payments on the bond are lower for the company, thereby reducing its debt-financing costs.

Interest is usually paid semiannually.

South Korea Government bonds are often quoted here; http://investment-income.net/rates/government-bonds-rate-page

I'm sorry I've never seen a North Korean Bond

No.