Fixed income securities, explained

Fixed income securities are simply loans that investors make to corporate or government borrowers. These investments come in various shapes and sizes, where a fixed rate of return or interest in the form of dividends or coupons is paid to the investor on a regular basis until the security’s maturity date arrives.

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When a fixed income security’s predetermined maturity date arrives, the principal amount of the investment is repaid in full to the investor or security holder by the corporate or government issuer.

The following are two of the most common types of fixed income investments available to aspiring investors.

US Treasury Bonds

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These securities are direct debt obligations from the federal US government and are considered the safest kind of debt since the federal government is the only entity in the entire country permitted to print money. Revenue from these US Treasury bonds is used to raise capital for federal initiatives or to service existing outstanding debt.

Money Market Instruments

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Issued by corporations or government entities, money market funds are open-ended fixed income mutual funds invested in debt securities such as banker’s acceptances, certificates of deposit, commercial paper, government securities, repurchase agreements, and other extremely liquid and safe securities. They have short maturity rates and run low credit risks.

For over fifteen years, Elizabeth Lesar has been maximizing revenue by building and nurturing relationships between investment firms and investor clients, with a focus on equities, fixed income, and alternative investment techniques, in the tri-state area of New York. For more information on her professional background and accomplishments, visit this blog.

Stock investing tips for beginners

The mere thought of investing in stocks can be daunting, especially when one has little to no experience. Here are some tips for the beginning equity investor to a good start.

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Know your role

When one buys company stock, one is essentially buying partial ownership of the company. As partial company owner, one has a set of rights and responsibilities. These rights include access to financial information on the company, such as financial statements, to assist in analyzing and making future decisions.

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As owner, one has the right to be privy to the company’s internal mechanisms, especially areas that can affect its growth or stability. Thus, it is the stockholder’s responsibility to cultivate a behavior like that of a company owner and assert entitlements to essential company information.

Be prepared to hold

Stocks can be volatile, especially during the short term. The market is fickle from day to day, so it would be extremely futile to base decisions on micro-movements. Short periods rife with various bursts of activity.

The real key to capital gains from stocks is patience. It takes time for a company or a business to grow in a value that the market will recognize and reward accordingly. As stock investor, one should be wise not to heed surface market popularity. Instead, focus on fundamental company performance when making decisions to stand by or to sell.

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For over fifteen years, Elizabeth Lesar has been specializing in maximizing revenue generation for investment firms and their clients, with a focus on equities, fixed income, and alternative investments in the tri-state area. To learn more about her and her financial marketing services, visit this Pinterest account.