Businessmen with chartsBond investing is just one of the options available for you if you are looking for different ways to make more money. While there can be quite a number of options out there that you can also try, bond investing comes with certain advantages that will benefit you. But first you need to know the basics before you should try to get involved in this type of investment.

Bond Basics
The basics you need to know about bond investing is that it involves putting your money in any of the different types of bonds available in the bond market. Basically, a bond is an IOU that a company or business issues to accumulate capital that it needs in order to make the business grow. It can be considered as a promissory note, coming with a promise that the company will pay for the money it borrows from an investor in a stated amount and time period. In effect, the investor lends money to a company or business based on the promise that he will get paid at a certain time and at a specified amount.

Bond Versus Stock Investing
You should know that investing in bonds is very different from investing in stocks. Bonds and stocks earn money under different circumstances and therefore, should be treated differently. Both may not follow the same investing methods.

Bonds are different from stocks in that the former does not represent ownership. A bond only represents a promissory note for money borrowed while stock shares represent actual ownership of the company. Bonds are generally considered as safer investments compared to stocks. Investors are more likely to see, at the very least, a return of their capital investment, unless the bond issuer goes bankrupt. It is for this reason why government-issued bonds are considered as safe investments.

Advantages of Bonds
Bonds also pay interest at set intervals during the term of the bond. It can provide investors with a revenue stream that they can use or set aside for other investment opportunities. Another advantage may come from investing in government bonds. The interest earned from government-issued bonds is also tax-exempt. This makes bonds as ideal investments for people who look for something where they can put their money that comes with a lesser risk.