More free lessons at: http://www.khanacademy.org/video?v=Qh-M3_L4xYk What it means to buy a bond.
Video Rating: 4 / 5
Tim Bennett explains the basics of bonds – what they are and how they work. Don’t miss out on Tim Bennett’s video tutorials — get the latest video sent stra…
You the man!
thanks for the bonds for dummies (me being the dummy)
You do not take into account share price dillusion for issuing new shares???
but that means that the first million shareholders get less money because
there are 500k extra shareholders.
ok, i see now what this means = i can control the universe with this
“interest”
So the 500k is kinda like a kickstarter? “We’re going to collectively give
you 500k to invest in the new factory?”. Or would the owner just raise the
shares without specifying why?
Company can sometimes buy back the bonds when market rates are low and
re-issue (in a sense they can refinance the loan)
Often junk bonds are not rated. Why?
the way he blinks when he proves a point lol
“if i pay 113 today, Ill get back 100 in 2014” but does the price have to
go down? can it ever go up instead?
Thank you very much for the vids, I recently got into investing, and my
online brokerage firm gives me all the fundamental numbers, but your videos
allow me to actually understand what the heck they mean.
thank you！ that’s a very clear explanation!
If I buy a bond above par and hold it to maturity, can I declare a capital
loss? If yes, can I then use the capital loss to offset the profit I earned
from dividends (assuming I have no other capital gains in the calender
year). If yes, to what amount can I offset dividend income by capital loss?
in that example was it a premium bond?
great vid thanks!
PS my 100 or so “trial” basics videos have been out for a while and seem to
be popular despite the fact the similar content is available free in places
such as Khan Academy, savingandinvesting and Motley Fool. So now my plan is
to properly refresh my content and make the presentations better and much
tighter. Plus I’ll be adding all sorts of new and expanded stuff. What you
are seeing here is just a taster for what I can really do. So keep an eye
out for me and thanks for watching so far! Tim.
Thanks a lot! Very well explained! 🙂
optionsupdate – I agree Bill Gross is a great source of bond articles. And
right2mike – there are indeed several ways to explain bonds. Khanacademy is
also a good source.
For anyone who wants a bit more on bonds and bond markets I have posted
“Bond basics part two”. Tim.
how much did tesco give u to keep using it as an example?
That was pretty good. All your videos are enlightening me. Thank you.
Bonds a fancy word for “Ponzi Scheme”
Sadly nothing 🙁
correct me if im wrong, government seek investors to give them money
because they(government) spent over how much they have.
You are the definitely better than all my professors combined . Thanks very
much I am grateful.