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Carry the World on Your Shoulders with Greek Bonds


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Greek Bonds: Why You Should Go Greek

Greek Bonds

In spite of the fact that Europe is still in the midst of economic crisis, Greek bonds continue to grow in popularity. This may seem strange to investors who are used to trading stocks rather than bonds. When trading stocks, the economic stability of a company is imperative to making returns on an investment. If a company is doing well, its stock rises. If a company is doing poorly, its stock falls. When it comes to bonds, however, it works a bit differently. Essentially, a bond is like a loan. When you buy a Greek bond, you are loaning money to Greek companies or governmental bodies. The interest rate, or coupon, is set when you first negotiate the investment, as is the date when the bond will reach maturity and the principle will be repaid. During the period that you hold the bond, you receive interest in the form of monthly, semi-annual or annual payments. It is the fixed loan term that makes bond truly different from stocks. While both investments are types of securities, many stocks can be held indefinitely.

Investing in Greek Bonds

There are a number of reasons why investors choose Greek bonds. Because of their fixed terms and fixed interest rates, bonds are considered to be much more secure than stocks. As Greece’s economy continues to teeter on the edge of destruction, bonds allow investors to get involved without risking everything. Additionally, bonds can prove to be greatly beneficial to those who sell them. Money loaned through a bond to a Greek company can be used to keep the company on its feet in trying times. Bonds also offer a secure way to loan money to the Greek government to help keep up with expenditure. Whether you are after the investment returns, you have family in Greece or you simply want to help out, there is no doubt that investing in Greek bonds can help keep the European economy afloat.

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