About Fixed Interest Securities

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About Fixed Interest

Summary Part 6

6. HOW TO INVEST IN FIXED INTEREST SECURITIES

Fixed interest securities in Australia are much easier to acquire than they have ever been.

Like shares, fixed interest securities are available in the "primary market" and the "secondary market".

When fixed interest securities are first issued, you can purchase them the same way you would purchase a stock IPO. The issuer provides a prospectus and the investor subscribes for a certain amount.

As many investors don't want to hold these to maturity and receive their intitial capital, they sell their securities to other investors. The trading of securities in this way makes up the secondary market.

The securities in this market most accessible to Australian investors are those listed on the Australian Stock Exchange. Almost fifty debt securities are currently listed on the ASX, and these can be traded just like shares.

However, not all fixed interest securities are listed on the ASX. Unlisted offerings can provide great opportunities to investors, because the companies are often small and offer high yields. But information is often scarce on these issues, and as they are not widely publicised, investors can miss out.

fisecurities provides a free email bulletin service to alert you to new issues of fixed interest securities, so that you will not miss out on important investment opportunities. Enter your email address below to subscribe.

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