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Corporations issue bonds as a way to borrow
large sums of money. Companies have two basic ways to raise money for
expansion, acquisitions, or other uses. They can issue stock or borrow the
money. Corporate bonds usually come in $1,000 denominations and have
maturities ranging up to 40 years, but are usually shorter.
Governments and governmental agencies also use bonds to raise money. U.S.
Treasury Bonds are the most secure investments in the world because the U.S.
Government backs them with its ?full faith and credit.? U.S. Treasury issues
come in several maturities and denominations. Other U.S. agencies issue
bonds to fund such things as mortgages and other government programs.
Municipal governments also issue bonds, which they often use to build roads
or perform other infrastructure projects.
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