Financial products are the interest earned on an investment. This investment can be a loan to a company that can help it set up its business. Financial products come in many forms. Find out about three investment products featured in this article
Many banks have large stocks that can make investments of money to a business. This is the case of the bank of america stock that can easily make an investment of money to a company. Among the forms of investment, you have bonds. Indeed, bonds are one of the financial products that are paid out by a bank, a company or a state. Bonds allow a bankrupt company to rectify its losses. These bonds are a form of debt that must be repaid by the recipient with an income stream. And this under a known duration.
Owning a share allows the holders to take ownership of a part of the company. And before committing, you must first analyse and study the return this can generate. A share gives the owners the possibility to intervene in the company and to subtract income called dividend. This income, which is processed in the company's account, is set by the shareholders. It is a share of capital that is issued after a loan.
Negotiable debt is a money market tool that represents debt received in capitalist companies. This tool is issued by a company or by the state, but after the agreement of the bank and according to a given duration. It lasts from one day to one year. Negotiable claims are represented by a Treasury bill if the debt has been issued by the government. Negotiable claims are also represented by a certificate of deposit. At this level, it is the bank that issues the debt. Finally, the debt can be represented by a commercial paper. In this case, if the debt is issued by a company. A person who has one of these tools must be repaid at the set times and with interest. The amount of the loan received is therefore less than the amount of the repayment.