Other Business & Society

Performance bonds are issued by banks and corporate organizations to clients as a guarantee that contracts will be completed satisfactorily and on time by contractors. Any lapse on the...

A convertible bond is a security that the holder can trade for common-stock shares in a company or cash of an equivalent value, usually at an agreed-upon price. This financial vehicle is a cross...

Bond ratings are an evaluation of the issuer's financial stability and ability to pay the interest and principal that is due at the maturity date. This should not be used as a guarantee that...

Everyone wants to know how to become rich. To become rich is not that hard once you the get the persistency and consistency that is required. There are multiple ways for everyone to become rich....

Frequently a business or government entity wants assurance another party will meet its obligations. One way of ding this is to require the other party purchase a surety bond. Developers routinely...

The key difference between stocks and bonds is that when you buy stock in a company, you're investing in a share of that company; when you buy a bond, you're loaning money to the company that you...

"Junk bonds" would be better described as highly risky bonds, and their formal titles actually reflect that. These bonds are issued to raise capital, just like other bonds, but by companies and...

Simply put, investment accounts adhere more to criteria than a strict definition of accounting, as defined by the IRS (Internal Revenue Service) and the SEC (Securities & Exchange Commission)....

Investors are attracted to money market accounts because they pay higher interest rates than savings accounts and provide more access to funds (you can even write checks on a money market...

The investment market can be confusing. Understanding the basics will help you when deciding where to invest. Most investments are either stocks or bonds and they are significantly different.

Corporate bonds are IOUs companies issue to borrow money, usually for capital investment. Bonds pay a fixed annual interest called the coupon rate. Typically, corporate bonds pay higher rates than...

Interest is the sum charged by lenders for the use of heir money. An interest rate is interest expressed as a percentage per year. However, the stated interest rate may not tell an investor how...

Money market accounts are a kind of savings account. The interest is variable and usually higher than on standard savings accounts. In addition you can write checks on a money market account. Many...

Bond and stock investments are the most familiar to most people. Assuming a stock or bond is a good buy, which is best depends on what the investor wants to accomplish. Both generally offer good...

Strictly speaking a money market is any system that brings investors together with businesses and governments seeking funds. However, in today's financial world the term money market refers to the...

For people whose investment goals are focused on protecting equity while getting good income, municipal bonds are a popular choice. That's especially true for those in high tax brackets because of...

Bonds are securities traded much like shares of stock in corporations and can be bought and sold through brokers or bond dealers. Unlike stocks, which give the investor a share in ownership, bonds...

Inflation-Indexed Savings Bonds (I-Bonds) are United States Treasury bonds that are designed to protect individual investors from inflation. They give a guaranteed return plus an additional return...

The key players in the U.S. bond market work in a system that trades debt securities. Various governments, institutions and banks play a significant role in issuing and purchasing this debt....

One form of investment that is very popular for investors in high tax brackets is a tax-exempt bond. A tax-exempt bond is a debt instrument that is issued by government agencies to fund certain...

Catastrophe bonds are popularly referred to as CAT bonds. These are securities that allow the risk to be passed on from a sponsor to investor. If the CAT bond is triggered, the principal paid is...

Bonds are issued by corporations and governments to borrow money for various purposes. What makes bonds different from other forms of borrowing is that bonds are traded in much the same way stocks...

Municipal bonds (often called “munis”) are issued by local and state governments to borrow money. Investors find them attractive because municipal bonds are usually tax-exempt and...

Unlike savings accounts or certificates of deposit (CDs), bonds don’t have a predetermined interest rate. The interest rate, or yield, changes as the bond’s price rises or falls. In...