How to Invest Today

In my first article on bonds for beginners, I let you know that a bond is a contract that involves paying money with interest back at set times. The issuer of the bond would be considered the borrower, the bond holder would be considered the lender, and the maturity date is when the money is due. Bonds can be issued by credit institutions, companies, and public authorities. Now a little more on the details of bonds.

In parts one and two of my primer course on stocks, I let you know that the stock of a business represents the original amount of money that went into founding it. Businesses divide stocks into shares, and each share represents a fraction of ownership. I wrote about shareholders, who are people that own one or more shares of stock in a joint stock company and “share ownership” of the business. I informed you that they have special privileges depending on the type of stock they own, and that they can utilize their shares as votes in the election of members of the board of directors of the company.