Re: Those are called BONDS. Got Any???? -- Independent Kevin S. Forum

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Subject: Re: Those are called BONDS. Got Any????

Author:
Anonymous

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Date Posted: 03:24:55 10/14/01 Sun
In reply to: 's message, "Re: Those are called BONDS. Got Any????" on 00:54:54 10/14/01 Sun

Bond trading is actually very simple, about as simple as buying or selling stock. Money is made on bonds in two ways, first on the interest paid on their face value and secondly on the discount or premium on that face value.

Companies or government wishing to issue debt (Bonds) at a lower interest rate that may be made from stocks at the same time will have to sell the bonds at a discount, and vice-versa when they offer a higher rate of return than the stock market is expected they are sold at a premium. This is why there is an inversely-proportional relationship between the debt market and the equity market.

Bonds are issued, and controlled, much the same way as an IPO (Initial Public Offering)for stocks. They are offered for sale and immediately bid on by institutional buyers who hold them or sell them directly at a small profit.The profit is small but zero risk since when buying a bond, you have a bond. In your schemes you promise zero risk but you have no bond in hand to back that up, merely promises from a scam artist.

There is no secret cutting house or trading room where they are shuffled off to before going to the market where secret traders whisper magical incantations over them to make billions for people the world over who happen to have 25K, a computer and undying faith.

If you don't understand these rudimentary principles of economics 101, Kevin dear, perhaps you are in the wrong line of work, as your track record also suggests.

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Replies:

Subject	Author	Date
Re: Those are called BONDS. Got Any????	Anonymous	10:46:10 10/14/01 Sun
KS Invents a new one.... -- Anonymous, 14:02:23 10/14/01 Sun Re: KS Invents a new one.... -- Anonymous, 21:57:25 10/14/01 Sun