How To Become A Corporate Bond Dealer
In order to make the most of your money in these tumultuous economic times, it would behoove one to learn how to become a corporate bond dealer. Buying corporate bonds without a broker is one of the few ways to invest money that can potentially be extremely lucrative. With a functioning knowledge of the stock market and stable assets, almost anyone can learn how to become a corporate bond dealer.
- Choose which companies you wish to invest in. Pay attention of the news and stay abreast of updates on the stock market. Pick companies you feel have great potential for growth in the coming years. Remember, this is a long term investment, so your success in becoming a corporate bond dealer is entirely contingent careful research of market trends.
- Purchase your bonds through an investment bank. Unfortunately, most companies will not sell their corporate bonds directly to a small investor. Larger corporations are unpracticed in pricing their bonds properly, so buying them through a major investment bank is really the best way to get the most affordable price for your investment. Examples of good banks, despite the market conditions, are J.P. Morgan and Morgan Stanley. However, this part of the process of becoming a corporate bond dealer requires extensive assets on the investors part, as these banks require the investor to maintain a balance in his or her trading account of at least $100,000.
- Exchange your corporate bonds through the New York Stock Exchange Bonds Trading Platform. This strategy appeals to potential corporate bond dealers who don't have enough assets to work through an investment bank. Using the New York Stock Exchange allows investors to gain access to real-time price quotes on the corporate bonds they desire. However, the potential investor is subject to paying the price of the corporate bond as demanded by the market, so more lucrative bonds will be more highly priced.
Buying and selling corporate bonds without a broker does have its benefits. The investor is not subject to paying the broker's somewhat extraneous fees and in effect has more control over the money he or she is investing. All it takes is the capacity to comprehend market trends and adequate equities to learn how to become a corporate bond dealer.