Sentences with phrase «gains on corporate bonds»

Not all investments are taxed equally, for example the gains on corporate bonds are taxed at the higher ordinary income rate while the gains of stocks are taxed at lower capital gains rates.

Gains and losses You may generate capital gains on a corporate bond if you sell it at a profit before it matures.

Not exact matches

For example, investors might use the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) to gain access to greater credit risk through an ETF focused on bonds rated BB and B, and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) to gain access to less credit risk through an ETF focused on bonds rated A and BBB.

The best choice is to direct her to funds that focus more on long - term capital gains and avoid dividend stocks or interest - bearing corporate bonds.

Most investors are familiar with the concept of debt securities (bonds, government bonds, corporate bonds), but MITTS function a bit differently: They still allow investors to capitalize on the gains from the stock market.