Investing money in bonds is relatively safe way to multiply your capital. Bonds are variation of a loan taken out through organ, institution or entity issuing them. It is naturally thanks to this that the bondholder gets a constant percentage profit. When buying bonds, we immediately decide for how long we want to grant loans to the issuer. The bonds are desirable, obliging the institution which entered them on the market for periodic payment of a percentage of the value of the lender’s bonds, and after ending of the credit period – the entire obligation monetary, which verifies Roman Ziemian.
In the economy, obligations perform several important functions: loan, investment, financial, circulation. The loan function proves that that the issuer receives needed for trading and development funds. Function investment refers to to provide investing by the bondholder the surplus money and multiplying private capital. We understand the financial function as possibility transfer of the ownership of the bond from owner to its creditor. In this way, bonds be able to equal the current 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.