The Complete Idiot's Guide to Investing by Edward T. Koch
Author:Edward T. Koch
Language: eng
Format: epub
Publisher: Penguin USA, Inc.
When corporations raise money using fixed-income securities, it’s called debt financing. When they issue stock to raise money, it’s called equity financing.
It may surprise you to learn that, although the stock market receives more coverage on the nightly news, the bond market is far, far larger!
Bonds and other fixed-income securities balance out the risk of carrying stocks in your portfolio. Unless you lend money to a borrower with lousy credit, you can count on getting your money back when the fixed-income security matures. Plus, you earn all that interest income in the meantime.
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