Next video:
Loading the player...

Find out how this method of debt investment is used to finance various levels of government and private companies.

Related Articles
  1. Investing

    Consolidating Debt

    Debt consolidation is one of the most powerful tools for debt elimination. Find out how this process works and what it can do for your personal finances.
  2. Insights

    The National Debt Explained

    We know it's growing, but we don't know exactly how. An in-depth look why the U.S. Government's debt continues to balloon and what it all means for you.
  3. Investing

    Explaining Privatization

    For a publicly traded company, privatization is the act of transitioning the company to ownership by private individuals.
  4. Insights

    Inspecting A Country's Debt

    Tensions over just how to handle debt are pitting the rich world against the developing world like never before.
  5. Investing

    Advantages of Public Vs. Private Companies

    A privately held company is owned by its founder, management or a group of private investors.
  6. Insights

    How High Levels of Debt Could Impact the Economy

    Here's how a large accumulation of private debt could impact the economy and investments.
  7. Investing

    Valuing Private Companies

    You may be familiar with publicly-traded companies, but how much do you know about privately-held firms?
  8. Investing

    How Is the Bank of Japan Monetizing Government Debt?

    With its massive QE program and more recent adoption of negative interest rates, it looks like the BOJ is monetizing the Japanese government's debt.
  9. Investing

    Explaining Government Bonds

    A government bond is a debt security a government issues.
  10. Investing

    Explaining PFIs and PPPs

    Public-private partnerships (PPP) and Private Finance Initiative (PFI) are two business relationships between government agencies and private businesses.
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center