Issuing Bonds
The corporations and governments that issue bond all want to raise money from investors, though not for the same reasons. Corporations often need large amounts of cash to finance growth and development. The issuers believe that the borrowed money will help build the business and help increase their earnings, and the increased earnings will be available to repay the loans.
Governments aren't profit-making enterprise, so bonds are the primary way they can raise money to fund capital projects such as roads and other infrastractures. Bonds also provide the money to keep everyday government operations running when other revenues aren't sufficient to cover the cost. When governments have an operating deficit, they may need to borrow increasing amounts from investors.
Governments aren't profit-making enterprise, so bonds are the primary way they can raise money to fund capital projects such as roads and other infrastractures. Bonds also provide the money to keep everyday government operations running when other revenues aren't sufficient to cover the cost. When governments have an operating deficit, they may need to borrow increasing amounts from investors.
