In: Finance
| The bond market is a financial market that involves issuance and | |||||||||
| trading of debt securities. | |||||||||
| The bond market is a way for the government and corporations | |||||||||
| to raise capital for government projects, business expansions and | |||||||||
| ongoing operations. | |||||||||
| You study the bond market as an investor when you want to invest your | |||||||||
| money in financial instruments that are more liquid than a savings account | |||||||||
| and have a lower risk than stocks. Bonds can be bought and sold and the price of | |||||||||
| bonds varies with fluctuating interest rates. | |||||||||
| There is a lot of learning opportunity when you study bonds because bonds are of | |||||||||
| many different types. The bonds are corporate bonds, government bonds, municipal bonds, | |||||||||
| mortgage backed bonds, asset backed bonds, and collateralized debt obligations. | |||||||||
| Corporate bonds are usually issued to fund ongoing business or expansion projects for corporations. | |||||||||
| Whereas government bonds and municipal bonds are issued to fund government projects throughout | |||||||||
| the United States. | |||||||||