How To Buy Company Bonds -

Unlike stocks, bonds are often "buy and hold" investments. However, you should still keep an eye on the company’s financial health. If their credit rating drops significantly, the value of your bond on the secondary market will likely fall. Are you looking to invest in a , or

Before buying, look at the bond's from agencies like Moody’s or Standard & Poor’s (S&P). how to buy company bonds

Most individual investors buy bonds through online . If you already have an account for buying stocks, you likely already have access to bond markets. Check if your broker offers a "Bond Desk" or "Fixed Income" section. 2. Decide: Individual Bonds vs. Bond Funds You have two main ways to invest: Unlike stocks, bonds are often "buy and hold" investments

These are "baskets" of hundreds of different corporate bonds. They provide instant diversification and are much easier to buy and sell, though the value of the fund will fluctuate with market interest rates. 3. Check the Credit Ratings Are you looking to invest in a ,

The total return you can expect if you hold the bond until it ends, accounting for the price you paid. 5. Place Your Order

Lower ratings (BB+ and below). These offer higher interest because there is a higher risk the company might default. 4. Evaluate the Key Terms When looking at a specific bond, pay attention to: Coupon Rate: The annual interest rate you’ll be paid.

Bonds usually trade in increments of $1,000 (the "par value"). If a bond is trading at 98, it costs $980; if it’s at 102, it costs $1,020. 6. Monitor Your Investment