What is the Bond in Stock Market?

Hello friends, myself Laxman, today in this article we see what is the bond in the stock market and also its advantage and disadvantage. How we make money from it. What is the function?

let’s see in step by step:

How to get rich from Nothing

What is the Bond:-

What is the Bond in Stock Market? it's advantage and disadvantage.

Bond is the financial instrument and also called the IOU. Bond is printed on fancy paper with a doodle around the border and the artwork at the top, but its purpose is the pure as the IOU purpose.

it’s is the record of that fact you have loaned money to someone else. It shows the amount of the loan and the deadline for that for paying it back. It gives an interest rate that the borrower has to pay. (What is the Bond in Stock Market)

When you buy a bond. it means you are not purchasing anything. you are simply making a loan. The seller of the bond is also called the issuer, is buying your money, and bond is the also prove that the deal has happened.

Advantage of Bond:- What is the Bond in Stock Market?

  1. A bond is a little riskier than a Stock
  2. getting regular interest on the bond
  3. when a company goes bankrupt you will pay first then the other people like stock-owned people.
  4. Bond gives average return when you got bonds maturity. (What is the Bond in Stock Market)

 

The disadvantage of Bond:- What is the Bond in the Stock Market?

  1. When you sell the bond before maturity i.e. premature you get very less money than you pay for the bond. because the bond market also goes up and down so for that.
  2. When a company goes bankrupt you lose a lot of money.
  3. limited amount of money get in the form of interest but its bond is long years the inflation eat the all money and value of bonds and money.
  4. The biggest disadvantage is Inflation.

 

When you buy the bond first of all research that issuer(or company) to have the ability to pay the return our money.

Junk bonds:

The higher risk of bonds is also called junk bonds. They have the ability to lose your all money. this is about junk bonds we see in the preferred bonds article. (What is the Bond in Stock Market)

This is all about the What is the bond, its advantage, and disadvantage.

Learn How to Select Bond:- Click here

Buy this book for more detailed information about Bonds

How to get rich from nothing in the Stock Market

Hello friends, myself Laxman, to we see How to become rich and wealthy in Stock Market.

In Stock Market, there is only one simple way that makes you rich i.e.Compounding effect.  Over the long term, you can become rich and wealthy.

What is the Stock market?

How to Get Rich from nothing in Stock Market:-

How to become rich and wealthy?

There are also different ways but it’s become very risky like Trading( intraday trading) speculating in the Stock market. But we have to make it without taking risks in the money management game. For that process we have to follow simple four steps :

  1. Income
  2. Save money
  3. Investment
  4. Simple living

let’s see in detail

Income: 

We have to become rich and wealthy in the Stock market. first, we want is the income source. That income source can be Passive Income or Active Income. In Active Income, we can do the jobs, self-employed work, etc. In Passive Income, we can make a website or youtube channel or any other things you do not work for that work.

Read more about the stock market: Click here

Save Money:

Money is earned by income or any jobs that money we have to save for our Investment purpose. I am personally Save money by avoiding spending money, I am Focused on the Need, not on the want. you can also save money by focusing on the need and cutting down the wants for your life. You can save tonnes of money by simply doing these tips.

Investment:

We have both Income and Saved money. so we have to start making money from money by simple investing. I am personally investing money in the stock market. those who have knowledge of the stock market can invest in that. Those who don’t know about the Stock market they can invest in Good Mutual Funds or the best strategy for the average investor is INDEX FUND these tips are also what Warren Buffett told.

To visit the book summary website: Click here

Simple Living:

We can be rich or poor only depending on the living of our life. We have to become rich and wealthy, we have to remember that when our money makes continuous money. we can be rich in a few

years. For this purpose we have to avoid the Ego boosting stuff, don’t compare it with others. This may be helpful to save money more and more and also help to invest more. These are four simple ways you can become rich and wealthy in a few years.

 

hey buy the following book to learn about money, to become rich

So this is about how to get rich from nothing in the stock market. hey guys, this looks simple, but actually, very few let’s say only 1% of people do this thing. so don’t take these steps easily, follow these steps seriously.

Charlie Munger Says in his quote, ” Take a simple idea, take it Seriously.”

Problem Solving In Life by using Rule of Inversion

How to solve the biggest problem in life?

Hello friends, I am Laxman, today’s in this article we see Problem Solving In Life by using the rule of Inversion and the great investors’ Charlie Munger give this rule, they mostly use in their life.

The problem solver rule is RULE OF INVERSION. These rules are the simple rule that anyone can use in there are to solve the biggest problems in life.

 

Rule of inversion:- Problem Solving

Problem Solving In Life

According to this rule, for anything that looks like a problem the simple way to solve the problem is to reverse the problem. When you reverse the problem you get them the reason for the problem. (Problem Solving)

when you get the main reason for the problem. then you can easily solve the problem. let’s understand with Examples.

Examples:

How to become rich:

this is the problem then use our rule to get a solution for this problem. how to go broke. when you get the reason behind the go broke then you understand the formulae by using your common sense, then you focus on the which things that let me go towards broke. (Problem Solving)

Then you have to avoid that thing so you can solve the problem like the following sentence to avoid getting rich. 

  •  spend more save less
  • buy things that you do not need
  • Buy things to impress other
  • doing only one income source
  • Invest in unknown business
  • Starting a business with maximum investment
  • Taking the high risk of money
  • Taking credit card lone

 

To visit Books Summary my another website: Click here

 

2. How to become Successful: This is the problem of every person and this rule also helpful in this problem also just reverses the problem. let’s begin, How to become a failure.

when you get the reason for failure then you have to avoid that failure reason to become successful, following some examples that become a reason for the failure and you have to avoid them (Problem Solving)

  • Fear
  • criticism
  • laziness
  • negative behavior
  • lack of skill
  • add your own point in a comment

This rule can solve the biggest problem in life by just reversing the problem.

Warren Buffett rules of Investing?

Hello friends, In today’s article we see warren Buffett’s rules of investing. Everyone knows this rule but no one follows the warren Buffett rule, because they don’t understand the logic of Warren Buffett’s rules of investing. So friends let’s understand the inner meaning of these rules.

Warren Buffett rules of investing

What are Warren Buffett’s rules of Investing?

Investing is the art and we have to learn that art by practicing. For learning this art we have to follow the investing rules, let’s see what is the rules of investing? in one by one format.

Investing Rules:

Rule no. 1: Never lose money :

let’s understand this rule, losing money is like lose of money during an investment or business. This is the simple one meaning, but we also lose money by Investing properly with good company but our money does not grow i.e. also called as the losing money. (Warren Buffett rules of Investing?)

 

 

To visit the value investing website: Click here

let’s understand an example: one women’s name is Geeta.

she makes an investment in a Bank, business, and the Stock market. she gets the return after the 10 years of investment from the bank is about 7%, in business 10% and in Stock market 15% percentage from investment.

All of us see that there is a good return from the investment. But there She is the lost money in the bank because the Inflation rate in that 10 years is all about the average is 10%. (Warren Buffett rules of Investing?)


So They lose money in the Bank and the same value of money remains in the business investment. so That concept is called the MONEY ILLUSION. There are lots of people experts know about this stuff. But they don’t tell you about this stuff.