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Thread: Shares and Bonds: Definitions, Interesting Facts.

  1. #1
    Trader Senorita's Avatar
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    Shares and Bonds: Definitions, Interesting Facts.

    INTRODUCTION TO SHARES AND BONDS



    When it comes to investments opportunities, people have really asked about the right type of investment they can put their money into. There are lots of investment opportunities ranging from shares, bonds, forex, Cryprocurrencies and much more out there.
    These are kind of investments that have huge potentials to turn our investments into profit making business which is what every investor would likely cherish or aspire to achieve.



    In this very article I will elaborate more on the two known types of investment options known as the Shares and Bonds, what they meant, and how profitable or risky these investments can be for investors.
    For this article, more research where carried out with the help of Google search engines which directed me to different sites where major points about shares and bonds where picked out and assembled to create a life out of this article.

    I believe by the end of this article, we can know the difference between shares and bonds, likewise understand what this type of investment is all about, and how we could key into this investment opportunity. I would look further to assemble more interesting facts about this shares and bonds to see we have the very point to which we can know if this is the very type of investment we can hope for now and in the future.

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  2. #21
    Trader Doge's Avatar
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    She's lying (again), it's because the large swings in interest rates. Easy money (0% interest) lures business into taking loans, few years later (when loans need to be paid) interest rates are a few percent up, which doubles the loan expenses, direct cause of which is bottom 5-15% of business goes bankrupt.
    Trade wars should actually postpone it as shortened imports make way for local business.
    Much of these easy loans are used for buying stocks, which is the reason for both stable uptrends in periods of money printing ("quantitative easing" as per modern words) and sharp crashes during crises.

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    Wow. Much Forex. So Monies. Very Opportunity.Many Trade. So Amazed. Wow.

  3. #22
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    i read all your article thank you for sharing this good piece of information actually i am also new in the market and i dont have a lot of opportunities you highlight all those opportunities that can help us in making profit...these kind of investments that have huge potentials to turn our investments into profit making business ....

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  4. #23
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    Stock have existed for a long time now and I don't see anything that could kill the stock market. Its true other investment opportunities keeps coming up daily but it do not deny the fact that stock market still have a good stand in the financial market and its where money can be made too. Bond are just interest rate investment platform for a fixed term and its through this process government or large companies borrows money from the public.

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  5. #24
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    Nice piece, shares as you said represent a percentage of ownership that is attributed to an investor in relation to the amount that investor commits to the enterprise.
    Now I'd love to ask, why would an investor choose to purchase preferred shares which absorbs your right to vote on organizational issues.
    Does it mean that such an investor does not care about the outcome of his investment?
    I don't think its wise to sit back and let some set of people determine what should be done in the organization without my input.
    After all, I'm a part and stakeholder of the enterprise.

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  6. #25
    Trader snnaky's Avatar
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    Quote Originally Posted by Doge View Post
    There is a Conspiracy Theory that states shares are used to control companies by bankers who own a large amount of their shares (thus enabling them to manipulated the shares' prices to some extent).
    And indeed ownership structure of many companies shows more than half of their shares owned by a few banks and funds, who also own most of each other's shares, thus pointing to single group ownership, although identities are not revealed.
    With banks it's even worse - post-WW2 macroeconomics links capital requirements with total shares value. Two years ago there was a case with an Italian bank where shares price suddenly dropped and the bank was forced to take extraordinary loans by bigger banks under quite suspicious circumstances.
    This is a good topic and I agree with you It is almost certain that there are those who run this market as They are the makers of the hidden market. They control the price by increasing supply or demand .based on their desires ; people goes with them .their desires unite in fear or greed and they are in all markets.

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  7. #26
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    I have always wanted to trade bonds, these being, there is nothing that offers better guarantee than bonds, there is a lot to which any one trader should look at, I love trading shares for the simple reason, that the shares are easy to analyse as a company and for that , all you have to do is to pull a company profile and make sure that the traders are absolutely well organized its important you realize the goal of any one trade and it is also important you look at the performance of your bonds, that makes it easy for one to know where to start where to go, its something that as a trader must be able to learn, bonds are easy to invest in especially when announced, stocks are easy to learn trading when the company performance is are easier to read.

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  8. #27
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    Quote Originally Posted by Senorita View Post
    DEFINITIONS: (SHARES AND BONDS)


    SHARES : According to the business dictionary definition, a share is a unit of ownership that represent an equal proportion of a company's profits and an equal obligation for the companies debts and losses.
    Investopedia stated that shares are units of ownership interest in a corporation or financial assets that provides for an equal distribution in any profits, if any are declared, in the form of dividends.

    More research towards Wikipedia tells us that a share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder.

    From all the definitions above, I will summarize that shares are valuable units and when an investor buys a share of a company, it gives that investor the rights to receive his own percentage of the company's profits and also his own share of loss when a company makes loss.

    SHARES CAN BE CATEGORIZE IN TWO PARTS NAMELY

    a) Ordinary Shares or the common stock : These are the type of shares where an investor or a shareholder share in the company's earnings and also vote at the company's annual general meetings or official meetings.

    b) Preferred Shares also known as the Preferred Stock: Here the shareholder gets a fixed periodic income of interest but do not have the power to vote.



    BONDS


    Investopedia defined bond as a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows funds for defined period of time at a variable or fixed interest rate.
    The financial dictionary sees bond as debts, issued for a period of more than one year. It also stated that bonds are in fact loans that you and other investors make to the issuers in return for the promise of been paid interest, usually but not always at a fixed rate, over the loan term.

    Furthermore National association of securities dealers automated quotations exchange (NASDAQ), also agreed with the financial dictionary which stated that bonds are debts issued for a period of more than one year. Where the seller of the bond agrees to repay the principal amount of the loans at a specific time.

    From my personal understanding from all definitions, I realized that bonds are said to be those money which you as an investor will be willing to give out to entities like companies, municipalities, governments for some period of time with an assurance of gaining an agreed fixed interest on your money.

    From the image below we can see how bonds are categorized.

    Greetings, your article is very interesting, I hope I can get useful lessons about forex in this forum

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  9. #28
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    There is a big difference between shares and bonds and lots of traders could trade both possibly on the same underlying stock. For example , for less risky traders, bonds are a good way to get some profitable returns over several years because they could insure some overall stable results yearly. It is possible to get some default from the companies, that is why it is recommended to invest only small amounts on the markets.

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