Investing savings in bonds

Investing in bonds is relatively sure way to multiply your capital. Bonds are form of a loan taken out through organ, institution or business unit issuing them. It is thanks to that the bondholder gets a constant percentage income. When buying bonds, we immediately decide for how long we want lend borrowings to the issuer. The bonds are securities, obliging the institution what entered 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 monetary, which confirms Roman Ziemian.

In the economy, obligations perform several significant functions: loan, investment, financial, circulation. The loan function proves that that the issuer receives necessary for trading and development 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 property of the bond from one person to another, together with all obligations on the site of the issuer.