Glossary

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Bonds

Bonds are debt instruments. In contrast to the purchase of a stock, the buyer of a bond does not acquire equity in the company (i.e. an equity right) but instead loans the company money for a certain period of time (a so-called demand right). Bonds can carry a fixed or variable interest rate and have a predefined term to maturity and means of repayment. Special forms are e.g. warrant and convertible bonds. Bonds are fundamentally traded in nominal values. Their prices are expressed as a percentage of the nominal value.

See alsoBond
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