Investing in bonds is relatively safe way to multiply your capital. Bonds are variation of a loan taken out through organ, institution or entity issuing them. It is naturally thanks to this that the bondholder receives a constant percentage income. When buying bonds, we immediately decide for how long we want available borrowings to the issuer. The bonds are beneficial, 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 end of the credit period - the entire obligation financial, which verifies Roman Ziemian.
In the economy, obligations perform several significant functions: loan, investment, payment, circulation. The loan function proves that that the issuer receives required for trading and flourishing funds. Function investment refers to to provide investing by the bondholder the surplus money and multiplying own capital. We understand the financial function as possibility transfer of the ownership of the bond from owner 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.
