It's hard to get down after eating - Frash Adash

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Frash Adash by Tesfahun Kebede part 39. It's hard to get down after eating. The transfer and sale of shares is important, but the capital market as a whole is even more important. A stock market is a place where people buy and sell stocks. 

 

The capital market is like a store where people buy and sell different types of investments, just like a supermarket where we buy products with names and information. A capital market is a place where we can easily buy and sell different types of investments.

 

There are many kinds of things we call securities that we can break down into a few important groups. The first thing is investing in something that pays a set amount of money regularly, like bonds. These are bonds issued by the government or businesses.

 

Suppose a business wants to get more money for growing their company but doesn't want to give away ownership or borrow from a bank. In that case, they can create a document called a promissory note. This note promises to pay back a certain amount of money with interest over a set period of time.

 

Yes, you can do it by buying treasury bills and bonds. Now even big companies can do that. The government can do it in a bigger way. If you buy the government treasury bills when they first come out, you have to wait until they are due before you can get your money back.

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