Sunday, March 29, 2015

Investment

Investment: directing resources,consume now for the future.
Financial Asset:claims on property and income of the borrower

Financial Intermediaries: institution that channels funds from savers to borrowers.


  Purposes for Financial Intermediaries

  • Share risk Diversification 
  • Reduce risk
  • Provides
  • Liquidity returns account investment received above and beyond in a sum of money that investment
Bond

  • Coupon rate
  • Maturity
  • Par Value
  • Loans or IOUs that represent debt that the Government  or a cooperation must repay to an investor
  • Low risk investments
  • Coupon Rate
  • Interest rate that a bond issuer will pay to a bond holder
  •  It's time at which payment to a bond holder is due
  • Hard value it's a account that invested pay to purchase a bond that will be repay at maturity

Yield:Annual rate of return on a bond of the bond were held to maturity 


Bond you LOAN
Stocks you OWN


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