What are corporate bonds?

Corporate bonds are debt securities issued by corporations and bought by investors. They usually have higher interest rates than government bonds and are backed by the payment ability of the company. What Economic Factors Influence Corporate Bond Yields? What Is Dirty Price? Definition, Vs. Clean Price, and Example

How is buying a corporate bond different from investing in company stock?

Buying a corporate bond is different from investing in company stock in that bondholders do not own equity in the company. Corporate bonds are typically issued in blocks with a face or par value of $1,000. Bondholders collect interest payments at predetermined dates according to the terms of the bond. » Learn more: Bonds vs. CDs

How do you invest in corporate bonds?

Read on to find out the basics of investing in corporate bonds. Corporate bonds are issued by companies that want to raise additional cash. You can buy corporate bonds on the primary market through a brokerage firm, bank, bond trader, or a broker. Some corporate bonds are traded on the over-the-counter market and offer good liquidity.