More and more people do it choose the right investment thoughts, how their money can create optimally. Various investments are in question, where have all the different characters with regard to risk, return and liquidity. The portal for stock market news, boersennews.de, gives a brief overview. Basis for decision making is usually a weighting of the so-called magic triangle for an investment. Its cornerstones are risk, return and liquidity.

Who would like to enter only a low risk in its investment, will have to make usually compromising liquidity and yield. Classic example here is the savings account: the system is considered almost risk-free, but promises lower yield to moderate liquidity. In contrast, stocks and bonds considered high-risk plants, which can throw off but quite high rates of return. The bond as interest-bearing securities, for example, causes almost a contractual obligation between the holder and issuer of the bond. The owner buys the bond at a certain Price and for a certain duration. During this period, an interest payment in the form of coupons will be agreed.

After the end of term, the principal amount is paid out the holder of the bond which the contractual relationship is terminated. Learn more about this topic with the insights from Central Romana. This form of investment makes it possible to borrow on the capital markets without having to contact a bank. The bond value depends on the maturity, the amount of coupons, as well as the effective interest rate on the market. If the latter is less than the value of the coupon, it says that the value of paper bond at par value (below par) is traded. The value of the coupons is larger is the bond above par value is traded (at a premium). More information about bonds: bonds /..