BOND
Governments (at all levels) and corporations commonly use bonds in order to borrow money. Governments need to fund roads, schools, dams or other infrastructure. The sudden expense of a war may also demand the need to raise funds. Similarly, corporations will often borrow to grow their business, to buy property and equipment, to undertake profitable projects, for research and development or to hire employees. The problem that large organizations run into is that they typically need far more money than the average bank can provide. Bonds provide a solution by allowing many individual investors to assume the role of lender. Indeed, public debt markets let thousands of investors each lend a portion of the capital needed. Moreover, markets allow lenders to sell their bonds to other investors or to buy bonds from other individuals – long after the original issuing organization raised capital.
DEBENTURES
Debentures generally have a more specific purpose than other bonds. While both are used to raise capital, debentures typically are issued to raise capital to meet the expenses of an upcoming project or to pay for a planned expansion in business. These debt securities are a common form of long-term financing taken out by corporations.
Invest in Bonds with us
Bonds Adda, a website of Dimension Financial Solutions Private Limited
(hereinafter “the Company”), is a SEBI-registered broker and an Online Bond
Providing Platform (OBPP) that enables investors to trade bonds and debentures
through exchange in the secondary market.
Click here