What is a bond?
A bond is an IOU.
When you buy a bond, you are loaning money to a borrower (in finance terminology, the borrower is called an ‘issuer’) for a defined period of time.
A bond is an IOU.
When you buy a bond, you are loaning money to a borrower (in finance terminology, the borrower is called an ‘issuer’) for a defined period of time.
To put it simply, trading is a skill of perfectly timing the market whereas investing is the art of wealth creation through compounding and reinvesting profits in interest and dividends over years by holding quality assets in the market. Traders’ main focus is usually on the price movement of stocks in the market. If the price of an asset significantly goes higher than how it was when it was bought, traders take this opportunity to sell the stock and gain a profit.
Money doesn’t come easy, and being good with money is about more than just making ends meet. Life is much easier when you have good financial skills. If you’re struggling with money management issues such a living paycheck to paycheck despite making more than enough money, then here are some tips to improve your financial habits.