Instant Profit Method System

Instant Profit Method System There are two main types of securities that are bought and sold in market , namely:

Stocks : It represents the share of ownership in the company .

Bond : They represent the leaves on the indebtedness of companies and pays a regular dividend to investors until their maturity dates .

Dear Investor , together, let's look at each of these securities in more detail .

First, the stock

 What is a stock? What kinds ?

The stock is close to the ownership of part of the company equal to the value of this stock . And check the stock higher return over the long term , especially if the goal of the investment is to achieve growth .

But what are the types of stocks?

There are several classifications of the Instant Profit Method shares and types in terms of return , where there are stocks of cash and other in-kind , and in terms of nominal share there are shares with a nominal record the name of the owner on the instrument of the arrow, or bearer shares do not write the name of the owner on the instrument of the arrow and move ownership as soon as trading between individuals .

The stock is generally divided into ordinary shares and preference shares .

The ordinary shares is the document of title granted to its owner a set of rights , such as the right to transfer ownership to another person , and the right to get the profits delivered by the company , and the right of access to the company's books , and also the right of priority in the IPO at increasing the company's capital , and the right to vote and to attend meetings of the General Assemblies , and the right to share the company's assets upon liquidation , the right of nomination for membership of the board of directors of the company.

 The preferred shares As is evident from the name given to the bearer additional rights not enjoyed by the owner of common stock , has met these rights , or some of them in some of the preferred stock or differ from the quality of the other , and the preferred stock gets its owners on the precedence for ordinary shareholders to get the proportion of of the company's profits , as they have priority in getting the result of the liquidation of the company before ordinary shareholders and bondholders after .

A preferred shares in terms of the right to vote . Although in most cases it is not the preference shares the right to vote in the general assemblies , but some versions of which may entitle the holder the right to attend the general assemblies and the election of the members of the Board of Directors .

 What are the advantages and risks of investing in stocks?

Stocks are considered the best tool for financial investment in the long term , especially if the goal of the investment is to achieve growth . When an investor buys shares is thus becoming the owner of part of the company equal to the value of this stock and bring the benefits of ownership of the stock to its owner through :

Increase its share of the ownership of the company they represent the value of shares owned by the company with increased growth , and this is directly reflected in the stock price will rise , which reached the capital gains .
 Get a dividend from the profits of the company.
 And investment in the stock is not without risk . Examples of the risks of investing in the stock :

 Risks of the company's earnings volatility .
 The risk of the share price decline .
Risk of non- cash stock , which means lower demand to buy it .
Second, bonds

What is a bond ? What kinds ?

Represent the bond we have on the issuer her either, and when bought an investor bond , it thus has agreed to lend a certain amount of money to this party in exchange for agreeing to answer this amount - ie, the original loan amount - when the deadline for eligibility , as well as pay a fixed amount of revenue in the fixed dates every three or six months , or a year. This return for the use of the issuer of the funds invested in the bond , through the life of the bond until maturity.

There are many types of bonds can be summarized as follows :

In terms of the period of eligibility
 There are short-term bonds less than five years .

 And medium-term bonds from 5 to 10 years .

And long-term bonds more than 10 years .

In terms of susceptibility to recover before maturity
 There are two types of bonds : bonds recover before the maturity date , ie , which provides contract issued to the right of the issuing company has to pay the face value of the bond before the maturity date , and the bonds are non-refundable , which does not provide the conditions issued to the right of the issuing company in the recovery , or pay the nominal value of the bond before the maturity date .

In terms of the ability to shift to stocks
 In some cases, the bond will be capable of turning ordinary shares , if so stipulated in the contract version and the approval of the holder on it.

In terms of return
There are different types of bonds in terms of yield , there is a fixed-income bonds determines the rate of return , which is calculated on the basis of Coupon . The bonds yielding variable is the change rate of return every certain period of time .

 There are also zero- coupon bonds , which do not generate income , and instead be offered at a low price much lower than the nominal value , and at the maturity of the bond pays the source of the nominal value of the full support it. The difference between the low price , which is selling the bond between him and the nominal value , the equivalent of regular payments that have accrued to the bondholder during his lifetime.

In terms of security
There are bonds secured by ensuring the eyes , where it is subject to certain assets for this version of the bond and the bondholders have a priority in the recovery of the value of their own bonds from the proceeds of the sale of these assets upon liquidation before other creditors . The unsecured bonds to guarantee a specific , they are bonds that are guarantors of the company's assets to repay them without being subject to any asset as collateral for these bonds .

What are the advantages of bonds ? What are the disadvantages ?

 There are many advantages associated with the investment in bonds , both for the individual investor , or the national economy , or the company issuing them. Where bonds are one of the sources of funding appropriate for the government , as it is one of the sources of financing low cost for companies , and given to the issuing company tax advantage where discounted bond yields from the tax base of the company, and also does not lead bonds to the loss of existing shareholders control over the company's management , because the bondholders not right to vote in the General Assembly .

 In terms of benefits to the investor , we find that the bond a financial instrument is exempt from taxes , and the bond holders have priority over shareholders when sharing the company's assets in case of liquidation.

 As well as to the bondholder the right to request bankruptcy of the issuing Binary Pro Cloner company at the lack of commitment to the requirements of the service Indus . There are also guarantees investors are granted by guarantors other than the company , such as banks and financial institutions .

 But in contrast, there are risks facing the bondholders , and perhaps the main danger is the lack of ability of the issuer of the bond proceeds to pay regularly , or refund the principal amount at maturity.

 To be able to determine the total level of risk related to the issuance of the bonds , the investor follow up and find out the degree of credit rating of the bond you want to buy . For this reason, compelled the General Authority for Financial Control of both the need to issue a bond to obtain a minimum credit rating from one of the credit rating agencies approved .


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