What are permanent investments?

Eternal investment is different types of securities that are not structured with any validity type or due date, and have the potential to provide the ongoing stream of revenues until the investor of his own assets. This term is often used to indicate bond problems that are considered undetectable, but are structured with regular payouts for investors. It can also be used in connection with certain types of inventory problems that the issuer brings the ability to apply shares under certain conditions, while providing a permanent source of income through dividend questions. Shares of this type are not carried by any type of maturity and generally provides dividend payments according to a predetermined schedule. In some cases, the shares structure allows the investor to choose cumulative payments, which means that instead of accepting dividend payments every time, the investor may decide to allow payments over time and then be paid outéna with a frequent foundation. For example, if the issuer normally provides a dividend payment every six months, the investor may be able to postpone the payment and receive a cumulative dividend once a year.

A certain class of bonds is also examples of eternal investment. With this type of bond, there is no maturity date and the issuer does not play the investor at the original purchase price. Instead, the investor receives ongoing interest payments as long as he continues to hold a bond. A relatively popular investment option in the 19th century, some of these bonds were structured so that ownership could move from parent to child and effectively create a source of income for each generation. Eternal investment of this type is not available worldwide, with some of the regulations that make it impossible to issue a bond date without a maturity date.

While permanent investments have a disadvantage that they will not be able to redeem the actIva, it is often compensated by a continued stream of benefits in the form of dividends or interest payments. If necessary, it is possible to sell most of these investments to another investor, and the benefits migrate to the new owner. In many cases, permanent investments have been held for years or even decades before selling, which provides a certain degree of financial security that is difficult to create using other methods.