How Do You Invest In Fixed Rate Capital Securities?
Fixed rate capital securities offer the benefits of both stocks and bonds to the investor. These securities generally are low-cost, pay regular dividends to the investor and have no definite maturity date. Fixed rate capital securities are paid for by company profits and so they are unaffected by interest rates and are tax-deductible for the investor. It’s fairly easy to invest in fixed rate capital securities. Step 1 Talk to your stockbroker about the available fixed rate capital securities. These securities are sold in an initial public offering to financial companies and traded on the secondary market between brokers. You can research different securities online, but your broker will be able to provide you with a list of what is actually available. Step 2 Check a financial website to get the investment ranking of your potential fixed rate capital securities. Standard and Poor’s ranks these securities just like bonds, with AAA being the best investment, BB being average and C being a
