Bonds News – Traders
In most circumstances bond holders do not own any of the company and are not invited to the annual meeting, this fact will not change until the day that the company is in financial trouble. Another difference between bonds and shares is that share prices can be very volatile, they can rise or fall at the drop of a hat so your money is never one hundred percent safe. Bonds prices on the other hand vary less and less the longer they are in use.
Profits that the company makes have a great effect on share price so shareholders have a lot more worry from day to day about if their investment is worth keeping, many in times of trouble sell their shares at a loss to eliminate the risk of losing any more of their capital. With bonds the main risk is atoned to credit, by this I mean the company may not have done at all well in the previous few years and is close to defaulting on payments.
Within different companies there are various different class of bonds with some of them moving to the front of the queue for repayment if the company ended up going bust. In summary you must decide the amount of risk you are willing to take before investing in either of these two entities, for a slow steady income use bonds and if you are feeling more adventurous with your money and want a quick return I would advise shares. We recommend yo review our Monthly Watchlist as these hold great new knowledge factors to follow. We also have added some excellent resource websites below, of which offer excellent choices in trading courses and much more: