Question

typing one page about international equity and bond market.

Answer 1

Solution :-

International equity market = International equity market is a market in which the shares of the companies are traded and investor can get equity shares of any listed company from it. And in the equity the investor gets the ownership in the company and he is timely receiving dividend whenever company distributed but he does not get any interest. In the equity market a investor also earns by the wealth maximisation as sell the equity shares when the market captitalisation of company increases means when share price increased.

In the international bond market a investor can purchase the bond there are generally three types of bond traded in this market that are eurobond , Domestic bond , Foreign bonds. With the purchasing bond a investor never gets ownership on the company he is simply a lender and receives interest on the amount invested as per the bond policy or as fixed time period It has very low fluctuations as if we compare with equity market which has very large fluctuations so we can also say international bond market is less risky as compared to international equity market