And also in a B2B context 'clearing' and 'settlements' for financial institutions.
2007-01-30 05:32:33 · 3 answers · asked by Bee 2 in Business & Finance ➔ Investing
Bonds are debt instruments. You lend an organization or government money and they issue an "IOU" and promise to pay interest on the money. The face value is typically $1000. The credit worthiness of the company usually determines the amount of interest they will pay - treasuries are consider to be "risk free" so they pay the less....some companies are considered to be below investment grade or high yield or plain old junk - since they are not exceptionally credit worthy, they need to pay a higher interest rate in order for you to give them money....
Clearing is the process of matching up the buys and sells and the money - a clearing house is usually a third party in the transaction and they take care of all that for firms...
Settlement is when the actual transaction becomes official - this is the day the buyer delivers the money and receives the security. For stocks it T(rade) + 3 (business days), Options are T+1...
2007-01-30 06:18:24 · answer #1 · answered by dashel_gabelli 3 · 0⤊ 0⤋
BONDS a company or government borrow funds for a defined period of time at a specified interest .
2007-01-30 14:03:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Oh I thought you were talking about covalent bonds and ionic bonds, etc.
Sorry, buddy, can't help you there...
Thanks for the 2 pts.
2007-01-30 13:46:19 · answer #3 · answered by Anonymous · 0⤊ 1⤋