About actions and bonds
The majority of our compatriots consider the bank deposit as the best financial product, allowing to receive the stable income. Actually bank deposit is a voluntary consent of the person to lend money to bank for a certain percent of the income.
As to bonds, they are the securities confirming the relations of a loan between you and, for example, with the private company or the state. The issuer (engaged in issue of bonds) should be reputed as the reliable borrower, and the investor (the buyer of bonds) has the right to demand payment of par value of the bond and the stipulated percent in a certain term.
In fact, the person lends to the company or the state money, receiving in exchange the bond. Certainly, at first sight it would be much simpler to make the loan agreement, than to be engaged in issue of bonds. However the last is a security which it is possible to sell to the maturity date specified in the contract. Some companies prefer to be engaged in sale of bonds, rather than to take the credit in bank under excessive percent.
Any investor, first of all, is interested not only in profit, but also return of the money. However to estimate prospects and financial possibilities of the company it is quite difficult. It is necessary to know that there are various issuers of bonds, for example, «blue counters», the second, the third, etc. the echelons testifying to their reliability. So, bonds of «blue counters», for example, the companies «Rosneft», «Gazprom» are considered as the most reliable, etc. And here upon purchase of bonds «not the first» echelons the investor, naturally, strongly risks.
The next way of investment – purchase of actions – is popular around the world, but does not exclude high risks, as till the end of crisis still far. The action, as well as the bond, too is a security, however between them there are essential distinctions. The investor owning actions, has the right to a part of profit of joint-stock company (joint stock company). Besides it has a right to participation in joint stock company management, and in case of its elimination – on a part of property. However such powers strategic investors, as a rule, possess, and interests and the rights of small shareholders are restrained and, in fact, are only formal.
If you decided to invest money in actions, prefer exclusive, that is giving the right to the fixed dividends. Buyers of common stocks risk to remain without dividends in general. However our compatriots take ordinary shares as in case of receiving by the company of big profit they manage to receive high dividends more often. The most popular actions treat cumulative, dividends from which collect for payment in the future that not always works. In any case it is impossible to call purchase of actions reliable way of enrichment. This way of investment suits people who want to get a quite good rise to pension.