Bonds:
the first things we need to understand as investors is that they are loans.
The bond issuer is essentially borrowing money from you and offering to pay back the entire amount with interest after a certain period.
You (the investor) are giving a loan to the bond issuer (the borrower).
But, bonds are also tradable. This means, you can sell the bond to someone else much before the maturity of the bond.
You don’t have to wait for the entire period.
This means, just like shares, you can easily buy/sell existing bonds.
So, just like shares in an IPO, you can subscribe to newly issued bonds.
And, also just like shares, you can buy/sell bonds in the bond markets.
16
2July 27, 2026 3.5K 1
