Investing money in liabilities

Investing in bonds is relatively safe way to multiply your capital. Bonds are form of a loan taken out through organ, institution or possibly business unit issuing them. Thanks that the bondholder gets a constant percentage profit. When buying bonds, we immediately decide for how long we want available loans to the issuer. The bonds are desirable, obliging the institution what introduced them on the market for periodic payment of a percentage of the value of the lender's bonds, and after ending of the credit period - the entire obligation financial, which verifies Roman Ziemian.

 

In the economy, obligations perform pair significant functions: loan, investment, financial, circulation. The loan function means that that the issuer receives necessary for trading and flourishing funds. Mission investment refers to to provide investing by the bondholder the surplus money and multiplying own capital. We understand the payment function as possibility transfer of the ownership of the bond from holder to its creditor. In this way, bonds may equal the valid currency. The circulation function allows transfer ownership of the bond from one person to another, jointly with all obligations on the site of the issuer.