Benefits and Non Benefits to investing in bonds

Benefit: Bonds give higher interest rates compared to short-term investments and less risky then stocks.Non Benefit: Selling bonds before they're due may result in a loss, known as a discount. If the issuer of the bond declares bankruptcy; you may lose your money. Hence you must critically evaluate the credibility of the issuer of the bond, ensuring that he has the capability to repay the bond amount.

To get more capital for your new company formed, you sell half your company to your friend or your family member for Rs 25,000. You put this transaction in writing 'my new company will issue 50 shares of stock. My brother will buy 25 shares for Rs 25,000.' Thus, your brother has just bought 50% of the shares of stock of your company.