How much is a bond worth?
Most Bonds have a face or par value, which is what the bond will pay back at the end of the term (maturity date). The face value can be different for different Bonds, anywhere from $1 to $1,000,000, traditionally however, they are quoted as if the Bond is worth $100, even if the single bond […]
Secured Bonds versus Unsecured Bonds
We continue our beginners series discussing the different types of bonds available. Bonds can be split into two main categories, Secured and Unsecured Bonds, each with different risk factors. With a Secured Bond, the company issuing the bond is willing or forced by the lender to offer something with a market value as collateral making […]
Bond Credit Rating
To ascertain a particular risk profile of a bond it can be marked with a credit rating from various credit rating agencies. There is a range of credit ratings available for bonds and credit agencies like Standard and Poor’s and Moody’s score a bond from AAA (the best quality) through to D. This is an […]
How are stocks traded?
Most stocks are traded on one or more exchanges. A place where buyers and sellers can meet and decide on a price. Originally this was the place where buyers and sellers were meeting in person, but now most exchanges are automated in rooms full of computer servers. The purpose of an exchange is to facilitate […]