What it means to buy a bond. Created by Sal Khan.
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Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy.
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So in order to evaluate a great bond you would have to calculate the real interest value, correct? Ex: if a central bank sets the interest rate at 6% and the the coupon rate is 7%, then you would have made a profit. It's tricky because you'd have to anticipate what the interest rate is gonna be, anyone have any thoughts on this?
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when you calculate the profits happened for that financial year, last year your asset including profit would be 50 billion dollars and this financial year calculating the launches and profits made from it the profit goes up and its 90 billion dollar, suddenly jeff Bezos is the richest man on eart, stock prices go up now ppl are buying it all over, tommorow someone tweeted something bad abt the company and the reputation dropped and ppl were afraid that customers wont buy anymore frm this company lets sell this stock, the entire process happens in reverse, now the asset goes down and stock value goes down also! BOOM jeff is no more the richest man in the world!
In the case of shares, you are either selling shares held by the company to create liquid assets or selling new shares to buy additional equity and therefore increase company asset value, ideally equal to the new shares created, not changing the price per share.
theres something i don't understand: what happens if you buy a countries bond a the country goes default on year lets say 2016 but bond mature at year 2020 and the country recovers from default by that time will the country pay the loan or since it went on default on the period from when you bought the bonds to age of maturity then it won't pay ? im liking the Venezuela bonds
the best clearest video out there. most introduction videos dont even tell you how much you receive as the holder of the bond and just segue into a flurry of complicated information. more videos need to take it step by step like this and explain exactly how each entity of the party makes money and the reasons behind it. well done
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.