What is the treasury?

The proposal of the Treasury, or T-Bill, is a short-term investment with a maturity data ranging from four to 52 weeks. These investments are often considered quite safe because they are supported by the United States government. When the investor wishes to purchase an account of the Ministry of Finance, he buys it at a discount rate. The amount paid for the bill on the Treasury of the Treasury varies and decides the offer process. Once the Ministry of Finance account is purchased, the owner will not receive any money until T-Bill will disappear when they receive the nominal value of the T-Bill. This difference, discount rate and nominal value rate are considered to be “interest” T-Bill. Another advantage of T-Bill is that when you buy it, you know exactly how much you earn through your life. (US dollars), for $ 9,500, receive $ 10,000 when T-Bill matures and earns $ 500 in this process. T-Bills are available in different denominations, from $ 10,000 to a million USD.

Treasury accounts are purchased through a competitive or uncommon offer. In the competitive offer of the offer, the investor decides what discount rate they will accept, although it is not guaranteed to receive this rate. In fact, they can end without T-Bill, or with one in another amount than they were originally interested. Competitive offers are treated through brokers, banks or other investment retailers. In the case of incompetitive offers, the investor agrees to accept the discount rate set at the auction. The investor is guaranteed by the T-Bill in the amount it wants or does not have to receive as high discount as a competing candidate. An incompetitive candidate will buy a treasury account through banks, brokers and other retailers and directly from the US Ministry of Finance.

Regardless of whether you decide to purchase a treasury account through a competitive or incompetitive bid procedure, do not expect you to receive a piece of paper to prove inLastřevní. T-apps are held electronically and any remaining T-Bills paper has achieved maturity.