Investing Money Markets

What is the importance of the US Bond Market?

Who are the key players in the market; and the types of investments available to both individual investors and institutional investors, How are the transactions carried out, and what is the relation, between the bond markets and the stock markets.

Public Comments

1. When you buy a stock, you have become an "owner" of the company. If the company does well, your stock goes up in value. It could double or go up 20 times in value (like Google). When you buy a bond, you are loaning that company money. You are told exactly what your interest rate will be and how long it will be until you are paid back. You get a check in the mail every month. With a stock, you don't get a check every month. If the bond pays you 8% interest, that's what you'll get. If the company doubles in value, you still get 8%; no more. You could loan the money directly to a company. They accept the money and hand you a "bond". Or you can buy the same bond thru a stockbroker who could sell you bonds in many companies instead of just one. Most bonds would be available to individuals as well as institutional investors. Unless the minimum investment is $1Million. Not many individuals would be buying those. One fun thing you can do is go to www.treasurydirect.gov and buy 1 United States bond. The minimum is $100. I bought some.