Continued from above
What are partnership bonds?
Suppose an automobile company needs 200 billion tomans of capital to set up a new production line in the factory. Instead, if this production line is launched, after 4 years and with the increase in sales of new cars from the same production line, the start-up costs will be compensated and the company’s profitability will increase by 25-30% during this period.
Therefore, this plan has economic justification and the automobile company can hope for the return of the initial investment and significant profit. But one of the ways that can provide the initial capital is the sale of partnership bonds. In this way, both the required financial resources are provided and the investors share in the benefits of the new production line in exchange for their participation and in proportion to their capital.
Of course, it should be kept in mind that the bond issuing company cannot guarantee the payment of periodic interest. Therefore, the interest of most of the bonds issued in the country is guaranteed by banks and reputable financial institutions or the government. So the owner of these bonds can be sure of receiving his interest.
Features of partnership papers
Partnerships have several features that should be considered when buying:
Bonds are issued with or without name. Bearer bonds are like bills and belong to the holder. Therefore, the owner of these papers should keep them in a safe place. Some banks keep these papers in trust, which will protect them from the risk of theft, fire, etc.
They have a nominal price and a certain maturity. Therefore, the bond owner receives the same price at maturity.
The repayment amount of the principal of the bonds at the maturity date and the amount of the accrued interest and their periods are guaranteed.
These bonds are bought and sold through the bank branches that sold the bonds or the stock exchange.
The owners of these bonds have a share in the profits of the company’s plans in proportion to the nominal price and the period of time they have purchased these bonds.
Like all other financial markets, there is a direct relationship between yield and risk, and considering that the profit of these bonds is guaranteed and they have no risk, therefore, one cannot expect a high profit from them.
The profit of partnership bonds is exempt from tax and this issue is one of the attractions of investing in these bonds.
This post is written by sfhjhygfrhesabhaseb