sells them. Treasuries come in a variety of different "maturities," or lengths of time until maturity, ranging from 3 months to 30 years. Various types of Treasuries include Treasury notes, Treasury bills, Treasury bonds, and inflation-indexed notes. These all vary based on maturity and amount of interest paid. 2. Corporate Bonds. Companies sell debt through the public securities markets just as they sell stock. A company has a lot of flexibility as to how much debt it can issue and what interest rate it will pay, although it must make the bond attractive enough to interest investors or no one will buy them. Corporate bonds normally carry higher interest rates than government bonds because there is a risk that the company could go bankrupt and default on the bond, unlike the government, which can just print more money if it really needs it. High-yield bonds, also known as junk bonds, are corporate bonds issued by companies whose credit quality is below investment grade. Some corporate bonds are called convertible bonds because they can be converted into stock if certain provisions are met. 3. EurobondsEurobonds grant access to international investors. They are denominated in bearer form, allowing the investor almost complete anonymity. Investors holding bonds outside their own countries are normally able to escape tax. Shares:Shares are a way for businesses or individuals to own parts of businesses. A share represents a proportional share of ownership in a company. As the value of the company changes, the value of the share in that company rises and falls. Types of Shares:Common Shares is aptly named, as it is the most common form of shares an investor will encounter. It is an ideal investment vehicle for individuals because anyone can own it; there are absolutely no restrictions on who can purchase it. Common shares are more than just a piece of paper; it represents a proportional share of ownership in a company - a stake in ...
