In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.Bonds are a long-term investment strategy, which are … [Read more...]
How to Buy Goverment Bonds Directly
Investors buy such bonds because they offer return with practically no risk on capital. Since stocks fluctuate, the bonds percentage in portflio will rise when stock market falls, if interest rates do not change. There is also the effect of the return of bonds which contributes additional money to your portfolio. You can invest in bonds in a a variety of mutual funds. The … [Read more...]
defining: premium issue
Generally, shares have a face value (i.e. the value as in a balance sheet) of Rs.10 though not always offered to the public at this price. Companies can also offer a share with a face value of Rs.10 to the public at a higher price.and this difference between the offer price and the face value is called premium . . As per the SEBI guidelines, new companies can offer shares to … [Read more...]