i have one doubt. it may sound V basic or silly but can anyone clear it. when we sell or buy stocks , we don't buy from or sell to any person. we Js click buy sell on the software and it does the action. so when we say there r no buyers for corporate bonds, what does it mean ? can't we simply click sell n it would get sold.
Let me confess,I am new to this concept.But will try to explain what i know: Here in corporate bonds,bonds are initially sold by Corporates /companies to raise funds.It is different from equity(where there is no guarantee of return of funds invested for the buyer).Here corporate promises to pay interest regularly and principal at the end of maturity.In between if the buyer wants to liquidate the corporate bond bought by him,he has to sell to others. 1.Selling of bond : a)initially selling by company b)subsequent selling between the buyers and sellers Though there is a button to sell on the software,which works on a sec to sell ur shares/bonds which are in demand.So the selling price depends on the demand. Corporate bond does not sell does not mean that there is not even a single buyer.But compared to buyers of G-Sec,buyers for corporate bonds are less,because may be: 1.Our trust on private company is less.So we dont want to beleive their promise also. 2.Even if i decide to buy ,I may ask for high interest as the risk is high(comapred to G-Secs/soverign bonds).But this interest rate may not be agreeble to the seller/company. So eventhough the corporate can sell his bonds,the rate of interest demand will be high buy the buyer which company cannot afford/does not want to afford ;-)
The demand of corporate bonds is low, when we are trying to sell corporate in the stock market, we may not get the sufficient price that we are looking for .when you click sell ,it will get sold but your returns will be low . Because there are less people looking to buy the corporate bond .
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Very good explanation ... thank you sir
Thanks sir after one year ,now I have clear understanding of bond yield
Pls upload part 1 bank rate sir ..
Very useful sir.thank you
Very very helpful
Thank you sir. Very helpful. I am waiting for this.
Sir .... Where can I find the part 1 (ie) bank rate
Sir benchmark interest means -will it fluctuate on yearly basis suppose for some year it is @9;@10@8@ like
for that i hv to join ur online course or its free off cost
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Sir .... Where can I find the part 1 (ie) bank rate
i have one doubt. it may sound V basic or silly but can anyone clear it.
when we sell or buy stocks , we don't buy from or sell to any person. we Js click buy sell on the software and it does the action.
so when we say there r no buyers for corporate bonds, what does it mean ? can't we simply click sell n it would get sold.
Let me confess,I am new to this concept.But will try to explain what i know:
Here in corporate bonds,bonds are initially sold by Corporates /companies to raise funds.It is different from equity(where there is no guarantee of return of funds invested for the buyer).Here corporate promises to pay interest regularly and principal at the end of maturity.In between if the buyer wants to liquidate the corporate bond bought by him,he has to sell to others.
1.Selling of bond : a)initially selling by company b)subsequent selling between the buyers and sellers
Though there is a button to sell on the software,which works on a sec to sell ur shares/bonds which are in demand.So the selling price depends on the demand.
Corporate bond does not sell does not mean that there is not even a single buyer.But compared to buyers of G-Sec,buyers for corporate bonds are less,because may be:
1.Our trust on private company is less.So we dont want to beleive their promise also.
2.Even if i decide to buy ,I may ask for high interest as the risk is high(comapred to G-Secs/soverign bonds).But this interest rate may not be agreeble to the seller/company.
So eventhough the corporate can sell his bonds,the rate of interest demand will be high buy the buyer which company cannot afford/does not want to afford ;-)
The demand of corporate bonds is low, when we are trying to sell corporate in the stock market, we may not get the sufficient price that we are looking for .when you click sell ,it will get sold but your returns will be low . Because there are less people looking to buy the corporate bond .
sir i had a question?? that from where u post the article???
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Very helpful