Financial management is an investment tool. Securities investment funds collect the funds of many investors and are managed by fund custodians (such as banks) and managed and used by professional fund management companies. By investing in stocks, bonds and other securities, we can achieve the purpose of income.
Securities investment refers to the investment behavior and process of investors (legal persons or natural persons) buying and selling stocks, bonds, fund bonds and other securities and their derivatives in order to obtain price difference, interest and capital gains. It is an important form of indirect investment.
Bond is a kind of financial contract, which is a debt certificate issued to investors by the government, financial institutions and industrial and commercial enterprises when they borrow directly from the society, and promises to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Issuers are debtors and investors (bond buyers) are creditors.
The face value of bonds refers to the face value of bonds, which is the principal amount that the issuer should repay to bondholders after the maturity of bonds, and is the calculation basis for enterprises to pay interest to bondholders on schedule. The face value of bonds is not necessarily the same as the actual issue price of bonds. The issue price greater than face value is called premium issue, the issue price less than face value is called at discount, and the equivalent issue is called parity issue.
Investment securities, also known as fund bonds, are written forms of fund units. Securities other than stocks and bonds. Fund sponsors raise a considerable amount of investors' funds in the form of issuing beneficiary securities or stocks, but there is no limit to the number of investors with the same investment purpose, and entrust specialized investment institutions composed of investment experts to make various decentralized portfolio investments. Investors share the investment income and the corresponding risks according to the proportion of capital contribution.