Financial Analysis On Financial Growth - 1301 Words

In today’s day and age, there is a tremendous number of financial vehicles that each and every investor can place their money in. Investors place their money into each of these financial tools in order to make any sort of profit. Obviously, investors do whatever is in their power to make the largest profit possible. Bonds, stocks, and mutual funds are three of these many options for financial growth. Unfortunately, people that may have heard of these do not take advantage of them at all. Bonds, stocks, and mutual funds are relatively simple financial vehicles and people today do not jump on the opportunity to invest. A large majority of people do not explore their options when it comes to allowing their money grow exponentially. â€Å"Bonds,†¦show more content†¦The pay out happens when the bond matures. The bond matures on the maturity date. A bond or note can be identified by six key pieces of information: name of issuer, coupon, maturity date, dated date, yield an d price, and CUSIP number. The name of the issuer is simply the name of the company that has issued the bond. The coupon contains the interest rate and who the bond holder is. The maturity date is the date in which the bond holder received his or her principle. That dated date is the date in which the bond was issued. The yield and price is the yield and price in which the bond holder may receive. The CUSIP number is a unique number in which each and every bond can be easily identified by. The yield of a bond is another way of saying the amount that a bond will pay. The current yield of a bond can easily be calculated by a formula in which the current yield is equal to the coupon divided by the price. If the current yield goes up, then the value of the bond goes down. If the current yield goes down, then the value of the bond goes up. So, the lower the current yield is, the higher the bond value is, the more money or principal an investor makes. ` The stock market is a lot like a really big auction. The people that participate in this auction are in one of two crowds. One crowd is normal everyday people who are trying to make money for themselves, and the other crowd is owners or people