Bonds are actually introduced by the concept of lending and borrowing. The concept of bond arises from the ancient times when someone borrowed money from someone and agreed to give a little extra, and against a written agreement. In one way you are suppose to issue bonds if you want to collect the money in times of need. Bonds can be classified into many types, depending upon the person or body who is actually selling it.

Bonds are a very safe kind of investment as the money which you will be getting from the bonds each year is a fixed amount of money that’s why they are often called fixed income securities. The bonds sold by the government of United States are termed as Treasuries; this name is given as the Treasure Department sells it. In case of companies, bonds are tagged as stocks and for state or local government are known as income tax.

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