Securities Market

Decent Essays
The terms “securities market” in Viet Nam is quite strange to the public while in many countries in the world, it have been developing dynamically. The securities market has its own attraction because of its important role to a national economy and interest for investors. Investing and growing securities market is one of the best ways to enrich our economy and create many opportunities for us. It can be only flourished if there are lots of investors with enough knowledge about securities. This report will provide some information about securities market in Viet Nam, make clear kinds of securities and introduce some major participants in Viet Nam capital market. Realizing the importance of securities market, we should spend more
…show more content…
Yields on municipal bonds are often lower than corporate or Treasurybonds with comparable maturities, because of the important advantage of not being taxed at the government level. The feature of this bond is low default risk, may be exempt from local authorities taxes and not very attractive.

c. Corporate bond
A type of bonds is issued by a corporation.Corporate bonds often pay higher rates than government or municipal bonds, because they tend to be riskier. The bondholder receives interest payments (yield) and the principal, usually 100,000VND, is repaid on a fixed maturity date (bonds can mature anywhere between 1 to 30 years). Generally, changes in interest rates are reflected in bond prices. Bonds are considered to be less risky than stocks, since the company has to pay off all its debts (including bonds) before it handles its obligations to stockholders. Corporate bonds have a wide range of ratings and yields because the financial health of the issuers can vary widely. The most popular types of this bond is convertible bonds. However, nowadays, many corporations choose to issue floating rate bonds; MOF estimated that there were about 18,000 floating rate bonds are issued in 2011. The feature of this bond is time saving, reducing cost
Get Access