A very similar term to stocks and shares which many traders may have heard about is bonds as it is also a very beneficial option in trading that can generate profits for the investors. These bonds are defined as a loan from an investor to a national government or a company. With this, the investor gets payments on a decided interest rate at which the bond was sold.
Even though most of the investors do trading among them, there are some people who prefer bond trading, they are known as the bond dealers. Most of the bond dealers often offer liquidity for bond investors which makes buying and selling of bonds way easier for investors. However, these dealers also have an authority to buy and sell among them which is either through bond brokers or even directly.
You must also keep in mind that with bond investors, not every time does it mean that it’s an individual. In fact, it could be even a financial institution, government or mutual fund.
Why investing in bonds is a good idea?
- Increment in yield on portfolio is the one of the foremost reasons why investors want to trade and associate with bonds. Yield