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After deciding which type of stock will suit your circumstances individual bonds, you need to specify the form in which you will buy the bond, either as a common fund or as an individual bond, and both ways have their pros and cons. Mutual bond funds and equity funds offer the advantage of owning multiple individual issuances in a single security, so if a bond is hard to repay or has fallen sharply, it will only have a limited impact on the value of the fund as a whole. Bond funds and funds whose shares are traded on the stock exchange are easily divided into investments and suitability for the investor and do not require a minimum investment limit. The managers of the financial portfolios
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Individual Bonds are funds loaned out to individuals or corporate entities over a given period of time. Upon maturity, interest and the principle amount is paid back by the borrower. The amount of interest payable is determined by the borrower and sold in share bundles. The interest rate is either paid daily, weekly, monthly or annually or over a number of years as determined by the issuers of shares.
Issuers of bonds vary from individual corporate entities to government around the world. According to fidelity.com "A bond is an interest-bearing security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals (known as a coupon), and to repay the principal amount of the loan at maturity. Zero-coupon bonds pay both the imputed interest and the principal at maturity."