As an investor, why would you purchase a bond?
Bonds are a very very safe and secure investment. While the interest rates are considered low, few companies default on them.
Government bonds are guaranteed by the government issuing them. [ In addition, government bonds earn interest tax free from either the federal or state tax authorities. ] Auto answered|Score 1|latefisher|Points 2233|User:
How important are bond ratings when evaluating a bond for purchase? Weegy:
The central consideration in determining the bond rating has to do with the financial condition and reputation of the debt issuer of the bonds. [ Simply put, the issuer has to be able to present a reasonable ability to be able to honor the terms and conditions that govern the issuance of the bonds. Demonstrating this degree of financial competence helps to ensure that that any investor that chooses to purchase one or more bonds from the issue can reasonably expect the return of both the initial investment and any accumulated interest that is extended as part of the purchase. Along with demonstrating the ability to eventually honor the terms of the bond issue, the bond rating process will also consider the ability of the issuer to meet the original schedule of interest payments, as well as the schedule for repaying the principle investment.www.wisegeek.com/what-is-a-bond-rating.htm
] Auto answered|Score 1|selymi|Points 8502|User:
What are the advantages and disadvantages of investing in mutual funds?Weegy:
A mutual fund is a company which buys investments in other entities. A large number of people investment their money in the mutual fund. [ The professional manager uses the huge amount of investors' money to buy stock, bonds, or whatever the fund invests in. Each mutual fund has specific objectives, specific levels of risk, and invests in specific industries.
The objectives are critical. For example one mutual fund might invest in speculative stocks with the objective of making a large amount of money in a short period of time and incurring a high level of risk. Another mutual fund may invest in well established companies with a return which is high enough to keep up with inflation and a very low level of return. The objectives define the level of risk the fund takes, the volatility of its stock, and the potential return on investment.
Some mutual funds are run by professional managers who spend their full time managing the fund in return for a percent of the total money invested. They manage the fund. Therefore these are called managed funds.
Other funds buy investments which are the particular bonds or particular companies which make up an index such as the Fortune 500. They are unmanaged funds. The management fee is likely to be much less for index funds, because there is much less management involved. http://answers.yahoo.com/question/?qid=20120329164916AAW4Art
] Auto answered|Score 1User:
How important is the investment objective as stated in the fund's prospectus? Weegy:
The managers of mutual funds tailor their investment portfolios to the investment objectives of their customers. As such, investors must make sure that their objectives and a prospective mutual fund?s objectives match. [ While discussing the answer to this question, you may want to review the objective for the Fundamental Investors Mutual Fund in this section. ] Auto answered|Score 1|jeifunk|Points 3833|User:
In your own words, describe the difference between a managed fund and an index fund. Which fund would you choose for your investment program? Weegy:
... if you own an index fund, you would ... in order to choose the best investment vehicle for your own ... [ investing, you may be confused as to the difference between a mutual fund ... www.ehow.com/what-is-a-mutual-fund/
] Auto answered|Score .7654User:
Describe the difference between a managed fund and an index fund. Which is better to use?Weegy:
... unmanaged index funds. Managed ... which fund offered the better ... if mutual funds... The Difference Between an Index Fund and a Mutual Fund. [ Index funds are passively managed ... www.ehow.com/how_6892811_do-mutual-funds-index-funds_.html
] Auto answered|Score .9155
All Categories|No Subcategories|Auto Answered|6/25/2012 6:56:48 PM