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BOND | Stocks are not all you need to understand in the stock market. There are also bonds. When buying a bond, investors are lending money to an issuer. The issuer, whether a government, municipality or corporation, promises to pay the investor a rate of interest on the bond as well as the par value (face value) when it matures. Together, bonds and stocks are known as securities and may be traded.
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BOND | Stocks are not all you need to understand in the stock market. There are also bonds. When buying a bond, investors are lending money to an issuer. The issuer, whether a government, municipality or corporation, promises to pay the investor a rate of interest on the bond as well as the par value (face value) when it matures. Together, bonds and stocks are known as securities and may be traded.
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To those outside of it, the stock market can be a bit of a black box. But as elusive as the stock market may seem, growing your knowledge takes understanding just over a dozen words and their relation to each other. People buy stocks to multiply their monetary supply. Companies issue stock to pay off debts, launch new products or enter new markets. It’s a bit more complicated than that, but for stock market beginners, these 15 words will surely better your understanding of the market.