Investing savings in bonds

Investing in bonds is relatively sure way to multiply your capital. Bonds are variation of a loan taken out through organ, institution or firm issuing them. Thanks that the bondholder receives a constant percentage profit. When buying bonds, we immediately decide for how long we want to grant borrowings to the issuer. The bonds are securities, obliging the institution what introduced 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, bonds perform several significant functions: loan, investment, monetary, circulation. The loan function means that that the issuer receives required for trading and development funds. Function investment refers to making it possible investing by the bondholder the surplus money and multiplying own capital. We understand the payment function as possibility transfer of the ownership of the bond from owner to its creditor. In this way, bonds be able to 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.