15. What is a Bond?

Bonds are pieces of debt of companies or governments and this brief video details further what a bond is.

Everyone should know what a stock and a bond are - this video gives a quick intro to that. What stocks and bonds are has a lot to do with how providers of capital interact with users of capital (through equity (which includes stocks for many large companies)) and debt (which includes bonds for many large users of capital).

Category:

Education

Tags:

• bond
• saving
• investing
• money
• finance
• Michael
• Fischer
• savingandinvesting.com
• business
• economics

[budegbe]

why are bondholder meeting seen to be important?

[savingandinvesting]

@budegbe Bondholder meetings are seen to be important as they are often called in relation to changes to the terms of bonds, the waiving of certain conditions and/or restructuring of the bonds or the company. These matters often require the consent of the bondholder, who when a company has difficulty making bond payments in an extreme case, have priority over the equity in the capital structure. Hope that helps, Michael.

[daddyjuju]

when an investor buys a bond..how do they know the "terms" of debt or interest rates...knowing how much he or she is going to get back

[savingandinvesting]

An investor only really knows what will get back when bond 'risk-free' meaning no risk of default. For all other bonds there is a risk of default/non-payment. Bond terms provide coupon and the principal & maturity (pot. risk of non-payment/no coupon). Knowing price, coupon, maturity and face value, yield can be calculated. Features are in the name of bond and description. US Gov Bond exmple: UNITED STATES TREAS NTS 3.37500% 11/15/2019 (Coupon 3.375%/yr paid semi-annually, maturity Nov 15, 2019).

[seeksoft]

very well presented, keep up the good work!

[salashaska223]

awesome vid, thanks a bunch...

[jeromerocks123]

just what i needed !!!!

[johnpaulsialafau]

@jaymeforeshew I hope you're not blaming the video for your failure. lol

[johnpaulsialafau]

@KilgoreTrout1907 Wow, you have some issues.

[johnpaulsialafau]

thumbs up. Man you make things so much easier.

[aviomaster]

@MrMick73 -- Well almost everything you buy in USA is Made in CHINA you pay Chinese with dollars , Chinese stockpile these dollars close to 2 Trillion ,

That is where China gets Dollars, Also China buys USA bonds and USA is obliged to pay China back with interest that is how USA goverment borrows the money, Also Chinese are debasing their money so that STUFF sent to USA is Cheap for Americans to buy.