The key to any successful marketing campaign is to plan and therefore execute it well. There are key issues that must be thought about before any distribution begins.
Firstly you need to think about your market and what you are trying to achieve from your campaign. Is it simply a brand awareness exercise, or is it to have a direct impact upon sales?
Once this has been established you can think about the content of your material, here you can exercise your creative talent. Corporate image is important, it is worth thinking about one logo that is present on all advertising material as this helps build recognition rates and brand awareness.
Obviously money off vouchers will provide a more quantifiable uptake rate in that you will be able to directly measure the response on redemption of these particular coupons.
Try to keep the message short and sweet. Getting your message across quickly in a few simple words which are easy to understand, possibly by using something humorous or a funny graphic, will trigger recognition and therefore help the recipient to remember and hopefully act upon your message.
Think about the type of paper that you use for your flyer , we would recommend that you use no less than 130gsm paper and preferably 300gsm, as this does not fold or crumple as it goes through the letterbox. Sizing is also important, A5 needs no folding so is therefore more suited to flyer distribution.
You now need to source a supplier who specialises in flyer distribution, you may think about finding a small local company who usually will be able to offer better rates, but then they will not be so accountable if things go wrong. The market is dominated by three or four larger companies who specialise in the distribution of advertising material, and it would be wise to approach one of these, as not only will they have the manpower and availability, but they will be able to offer much advice and guidance which will help you at this vital planning stage.
Remember that very attractive rates do not necessarily mean that you will be getting good value for money, it is better to pay a little more, but have the confidence in the company that is undertaking the distribution contract. It is vital that your message reaches the letterbox and not the bin.
When talking with your chosen supplier you need to discuss the areas that you wish to cover. Targeting your material rather than blanket coverage can be the most cost effective way of reaching your most receptive audience. Most companies will offer some form of profiling, and this will help in sourcing the better areas according to your target audience. It is normally possible to target by income group, age range, and leisure preferences etc. Vital here will be determining the size of your print run and therefore the final budgetary expense. This will help you in establishing your final return on investment.
It is very important to undertake this planning process well in advance of your chosen date for distribution; it is too late to plan your Christmas campaign in late November!!
All of the above, form a very simple process that will enable you to get the very best from your distribution, therefore providing a profitable return on expenditure.
How To Make The Most Of Your Flyer Distribution Campaign
Creating Investment Opportunities for Small Investors
Stock exchange or bourse is a mutual organization which provides facilities for stock brokers and traders, in trading company stocks and other securities, and for the issue of redemption of securities and other financial tools and capital events like the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less linked to such a physical place. Electronic networks run modern markets are, providing them great speed and cost of transactions. Stock exchange is often called the most important element of a stock market. The Demand and Supply in the stock markets is attracted by number of factors that affect the price of stocks.
Creating investment opportunities for small investors:
The Stock Exchange provides opportunity for small investors like the big investors to own shares of the same or different companies.
History of stock exchanges:
In 12th century France, the courratiers de change were concerned with managing the debts of agricultural communities on behalf of the banks and these men also traded in debts. These men were the first brokers.
In the middle of the 13th century, Venetian bankers traded in government securities. In 1351, the Venetian Government outlawed spreading rumors about lowering the price of government funds. Because of this rumor people in Pisa, Verona, Genoa and Florence also started trading in government securities which was possible because there were independent city states ruled by a council of powerful citizens during the 14th century.
Raising capital for businesses:
The Stock Exchange helps current and newly-formed companies raise capital for building and expanding their business through selling shares to the investing public.
Mobilizing savings for investment:
When people draw their savings and invest in shares, it leads to a more balanced allotment of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized to promote business activity that benefits several economic sectors like agriculture, commerce and industry, resulting in a stronger economic growth.
Government capital-raising for development projects:
Governments at various levels may decide to borrow money for financing infrastructure projects like sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds are raised through the Stock Exchange where public buy them, thus loaning money to the government. The issuance of such municipal bonds can prevent the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.
Listing requirements:
Listing requirements are the set of conditions forced by any given stock exchange upon companies that want to be listed on that exchange.
Requirements by stock exchange:
For companies to have their stock and shares listed at the stock exchange have to meet certain requirements of the exchange. But requirements vary in different exchanges.
What Makes Old Stocks Valuable
An American dream: you find something in an attic or flea market that turns out to be valuable. That something could be a stock certificate that is still valid for ownership in a company. Of course, if you were to find one, it should be researched.
But unfortunately, that rarely happens. However, it still might be worth something as a collector's item. This article discusses the collector value of antique stock certificates.
Ultimately, of course, what makes a collectible stock certificate valuable is someone's willingness to buy it at a particular price. The more people who want it, the more it is worth. That's the demand side of Supply and Demand.
But what about the supply side - the certificates themselves? The following are some of the characteristics of the supply side of certificates that help create more value.
1. Aesthetic appeal - Is it pretty, powerful, soothing, impressive, memorable, joyful, comforting, funny? Do I like it? Is it "me?" You'll notice these are all emotions of the viewer. That's what art does if it's good - it evokes emotions. Here are some of the decorative aspects of stock certificates that most people appreciate:
-The vignette(s). One or more of these pictures can be found on most certificates. Vignettes are usually made from original etchings and cover many different subjects and scenes. Many are so detailed that they can show a wide, complex harbor scene, a busy western town or the individual feathers on an American Bald Eagle.
-The border. Borders are often quite ornate and "frame" the certificate. They can be intaglio printed, which results in a precise 3-D effect. Some may have extra vignettes woven into the design or intertwined in filigree.
-The writing. In the old days, certificates were filled in by hand. In that period, beautiful hand writing was a source of pride, so older documents sometimes look like practiced calligraphy samples.
-The extras. Certificates may have one or more of the following: a company seal (embossed), revenue or transfer stamps (stuck onto the front or back), redemption coupons (for interest or dividend payments), an attached stub (similar to a check stub for registration), under prints (a light design seemingly in the background), sophisticated color tone usage (gradients, realism, dimensional)
-The impression. This goes back to the emotions evoked. Does the overall certificate strike you? Is it one you would be proud to own or display?
2. Signatures - This is similar to the "writing" above, but this is special. Who wrote it? Original, hand written signatures of well known people (Rockefeller, Houdini, Edison, Disney...) are usually in high demand. Even their printed signatures can have incremental value because it is a document from an organization they were affiliated with at a certain time in history. If you research names on certificates, you will find fascinating stories behind them that you probably never learned in history class.
3. Scarcity - This is trickier than it seems. In general, the rarer a document is the more valuable it is, but not always. Take railroad certificates. Relatively, there are lots of them. But, relativley, there are also lots of railroad certificate collectors.
And there are people who collect other types of railroad memorabilia and decide to collect a few railroad certificates. And there are stamp collectors that also collect certificates that have stamps on them.
There are also many people trying to fill in collection themes (geographic, company lineage, varieties, vignette subject...). So a certificate may have more samples available than another, but still be more valuable because the demand is higher.
4. Condition - Most of the time, as with any collectible, the better shape a certificate is in, the more valuable. Very old certificates almost always show some signs of aging and wear (fold creases, fading, rough edges, cancellation marks or punches...). After all, how would you look after 150 years? But excessive marring (heavy stains, splits, holes, tears...) diminish value.
5. Age - Usually, the older the better. Early certificates are often rarer, have more character, have interesting vignettes and have historical significance.
6. History - Every old stock certificate is literally a unique piece of history. Many collectors become history buffs in the process of researching the people and stories behind their certificates. You can learn how towns were named, the quirky way newspaper stories were written long ago, why the mining labor disputes erupted, how railroads became the arteries and veins of America, the trials and joys of Old West living, the crazy inventor ideas that birthed major industries, and lots more.
So these are six major stock certificate characteristics that create value. Add in the overall fact that there is a finite supply of antique stock certificates and, currently, a growing demand, and you have a beautiful Supply/Demand scenario - that's how value increases.
(Disclaimer: No one should promote stock certificates as an investment. You should collect them because you enjoy doing so, and if they happen to increase in value, that just makes it more fun.)
Scripophily (the collecting of antique stock certificates) only got its name and wide recognition as a legitimate collecting field about forty years ago. So, while there are plenty of high-value certificates, there are even more that are very affordable. Enjoy them.
Which Old Stocks Are Valuable?
Everyone dreams of finding something in an attic, flea market or garage sale that turns out to be valuable. That something could be a stock certificate that is still valid for ownership in a company. If you were to find one, it certainly should be researched (just in case). But unfortunately, that rarely happens. However, it still might be worth something as a collector's item. This article discusses the collector value of antique stock certificates.
Ultimately, of course, what makes a collectible stock certificate valuable is someone's willingness to buy it at a particular price. The more people who want it, the more it is worth. That's the demand side of Supply and Demand.
But what about the supply side - the certificates themselves? The following are some of the characteristics of the supply side of certificates that help create more value.
1. Aesthetic appeal -
Is it pretty, powerful, soothing, impressive, memorable, joyful, comforting, funny? Do I like it? Is it "me?" You'll notice these are all emotions of the viewer. That's what art does if it's good - it evokes emotions. Here are some of the decorative aspects of stock certificates that most people appreciate:
- The vignette(s). One or more of these pictures can be found on most certificates. Vignettes are usually made from original etchings and cover many different subjects and scenes. Many are so detailed that they can show a wide, complex harbor scene, a busy western town or the individual feathers on an American Bald Eagle.
- The border. Borders are often quite ornate and "frame" the certificate. They can be intaglio printed, which results in a precise 3-D effect. Some may have extra vignettes woven into the design or intertwined in filigree.
- The writing. In the old days, certificates were filled in by hand. In that period, beautiful hand writing was a source of pride, so older documents sometimes look like practiced calligraphy samples.
- The extras. Certificates may have one or more of the following: a company seal (embossed), revenue or transfer stamps (stuck onto the front or back), redemption coupons (for interest or dividend payments), an attached stub (similar to a check stub for registration), under prints (a light design seemingly in the background), sophisticated color tone usage (gradients, realism, dimensional).
- The impression. This goes back to the emotions evoked. Does the overall certificate strike you? Is it one you would be proud to own or display?
2. Signatures -
This is similar to the "writing" above, but this is special. Who wrote it? Original, hand written signatures of well known people (Rockefeller, Houdini, Edison, Disney...) are usually in high demand. Even their printed signatures can have incremental value because it is a document from an organization they were affiliated with at a certain time in history. If you research names on certificates, you will find fascinating stories behind them that you probably never learned in history class.
3. Scarcity -
This is trickier than it seems. In general, the rarer a document is the more valuable it is, but not always. Take railroad certificates. There are, relatively, lots of them. But there are also, relatively, lots of railroad certificate collectors. And there are people who collect other types of railroad memorabilia and decide to collect a few railroad certificates. And there are stamp collectors that also collect certificates that have stamps on them.
There are also many people trying to fill in collection themes (geographic, company lineage, varieties, vignette subject...). So a certificate may have more samples available than another, but still be more valuable because the demand is higher.
4. Condition -
Most of the time, as with any collectible, the better shape a certificate is in, the more valuable. Very old certificates almost always show some signs of aging and wear (fold creases, fading, rough edges, cancellation marks or punches...). After all, how would you look after 150 years? But excessive marring (heavy stains, splits, holes, tears...) diminish value.
5. Age -
Usually, the older the better. Early certificates are often rarer, have more character, have interesting vignettes and have historical significance.
6. History -
Every old stock certificate is literally a unique piece of history. Many collectors become history buffs in the process of researching the people and stories behind their certificates. You can learn how towns were named, the quirky way newspaper stories were written long ago, why the mining labor disputes erupted, how railroads became the arteries and veins of America, the trials and joys of Old West living, the crazy inventor ideas that birthed major industries, and lots more.
So these are six major stock certificate characteristics that create value. Add in the overall fact that there is a finite supply of antique stock certificates and, currently, a growing demand, and you have a beautiful Supply/Demand scenario - that's how value increases. (Disclaimer: No one should promote stock certificates as an investment. You should collect them because you enjoy doing so, and if they happen to increase in value, that just makes it more fun.)
Scripophily (the collecting of antique stock certificates) only got its name and wide recognition as a legitimate collecting field about forty years ago. So, while there are plenty of high-value certificates, there are even more that are very affordable. Enjoy them.
Restaurant POS Systems: Enhancing Revenues Through Innovation
It doesn't seem so long ago that hospitality operators were excited to see Remanco POS Systems hit the marketplace. Does anyone out there still remember the original Remanco POS System? You had a sleek looking keypad, a little black plastic "key" and a bible of PLU codes to memorize. You punched in your food and beverage orders, and miraculously, your beverage orders printed out at the bar while your food orders printed simultaneously in the kitchen. It was exciting, sleek, and revolutionary. In many restaurants, the main Remanco terminal was proudly located next to the Pac-Man machine. Enough said.
The world of restaurant POS systems & POS technology in general has come a long way since those early days. Today's hospitality operators are much more tech savvy than they've ever been, and the point of sale industry is slowly responding to this fact. With this said, here's the top features you, as a hospitality operator in 2009, should be looking for once you've decided to invest in a new restaurant POS system.
Data Reporting
The top two issues every hospitality-based business wants to get a handle on are food cost, and labor costs. Keep those things in check, and your chances of succeeding in such a competitive market are greatly increased. Modern POS systems will help you get a handle on these profit killers by allowing managers access to important, easy to understand data on demand, and in real time. A POS system with state of the art data reporting capabilities will allow you to forecast business volumes, which gives managers the information they need to fine tune scheduling and avoid unnecessary labor costs. Time and attendance can be precisely monitored. Real time and instant access to data also allows managers to spot problems quickly and make snap decisions to address discrepancies in cash flow and adjust inventory levels. The POS system will pay for itself many times over if it can help you get a handle on these two issues alone
Back Office Management & Database Integration
Having all your POS terminals linked together, combined with the ability to run reports, make menu and pricing changes on the fly, check inventory levels and consolidate payroll at one central location is crucial to running your business efficiently and profitably. Your POS system should allow you to do this quickly and easily, all from the back office. Database integration and back office management capability should be at the top of your shopping list.
Customer Relationship Management
Effective promotions can go a long way in boosting profits. Determining if your coupon or gift card program is working as it should, however, can be difficult. POS systems that can quickly help you evaluate which promotions are working and which ones aren't, can save you time and money in spades. Having a POS system that can keep track of customer histories, their likes and dislikes, comments, etc. can give you valuable insight into what future promotions to put in effect, and which ones should bite the dust. Effective customer loyalty and points programs keep your customers coming back. When it comes to CRM, let your POS system do most of the thinking for you.
Wireless Mobile Computing & Handheld Devices
Wireless point of sale is imperative for businesses that operate outside of traditional, brick and mortar locations. Venues such as ski resorts, theme parks or even stadiums can greatly benefit from wireless POS systems (think concession stands or private suites for instance). In a more traditional environment, such as a restaurant, the benefits of having wireless, at the table ordering capabilities through handheld devices are many.
With wireless handheld units, serving staff save time by not having to line up to get access to the POS terminal, and therefore are much more productive. Managers can reduce staffing levels by scheduling just a few skilled staff, give them larger sections, and make their primary focus greeting customers, taking orders and up-selling. Non-serving staff can then be hired (at significant payroll savings) to dispatch food and clean sections. When serving staff are able to remain on the floor, the result is a superior customer service experience for your patrons and increased sales for you through up-selling and faster table turns. Also, waste is cut down considerably, since placing orders at the table greatly reduces errors.
Wireless handheld devices have been greatly refined in recent years, with increased battery life for handheld units and improved ease of use for staff. The time indeed has come to embrace wireless POS technology.
Payment Security & PCI Compliance
Payment security is crucial in today's marketplace. With the incidence of fraud and identity theft reaching epidemic proportions, safeguarding the safety of your client's credit card data is vital. The PCI Security Standards Council is an open global forum for the ongoing development, enhancement, storage, dissemination and implementation of security standards for account data protection. It's imperative that POS systems today follow this standard. Is your POS system secure and PCI compliant? If it's not, it needs to be.
Self Service Technology
Self service technology has created quite a buzz in recent years. Having moved beyond kiosks, POS systems now offer self serve options that give restaurateurs' the ability to delegate the food ordering process to customers themselves. Touch screen terminals are now intuitive and easy to use, and offer add on/up sell items items instantaneously, which boosts average check totals. The traditional "Server" is replaced by food runners, or counter staff, who can also do quality checks. Even the payment process can be taken care of by the customer, allowing for quicker table turns and increased cover counts. Self service technology may not be appealing for patrons looking for a fine dining experience, but it certainly is attractive for those who operate fast food or quick serve/casual dining establishments.
Enterprise POS & Multi Location Capability
For those who operate large and multi-location operations, choosing the right POS system has never been easy. Due to logistics and a host of other obstacles, businesses with multiple locations were forced to be creative in how they coordinated the collection of cash and data. Businesses such as these require enterprise wide POS systems that offer features such as client recognition capabilities, hospitality and retail sales, gift card processing, quick and easy debit and credit options, and more. They also require a POS system that can get around cabling and network issues, and preserve precious data in case of a system or network failure. If your company fits in this category, a reliable and flexible enterprise POS solution is a must.
With the above points in mind, one POS system is without peer in the point of sale industry. Toronto based Volante POS Systems offers a state of the art, modern and flexible POS system. Volante has seamlessly embraced all the above features and more, and is fully PCI compliant. Volante is also cross platform compatible, meaning it will run on Windows, Linux or Unix. Linux POS solutions are very attractive these days, since they allow business owners to cut costs by saving on Windows licensing fees, and are easy to use.
According to Eddie Stutz, VP of Operations for Woodbine Race Track in Toronto, Volante's flexibility has been key to ensuring smooth operations on a day to day level.
"We are a very complex company." Says Stutz. "Woodbine has given Volante much more exposure than anticipated, due to the fact that it can be used in many venues. It's an all encompassing system. I'm able to pull up any menu I want from any location, I can pull up a dining room menu, then switch to a lounge menu, for instance."
Other reasons for choosing Volante POS systems included Volante's array of other applications, including purchasing, rewards and retail, as well as the ability to integrate with Woodbine's player-reward application. Woodbine installed Volante at all their various venues (club, casual and fine dine, cafeteria and quick service), numbering some 200+ registers in a mixed Linux / Windows enterprise topology.
"Nowadays everything is about convergence and getting all systems into one", says Randy Folmes, director of IT at Woodbine. "We want to get to the point where we can say 'how much did we sell today?' and run one report to find out".
Volante also utilizes peer-to-peer technology, which allows each terminal to be connected, yet operate independently, without being reliant on a main server. Volante's unique implementation ensures that your business will continue to run smoothly in the event of a terminal or server failure. In other words, if your system crashes, your POS terminal still operates without losing any data or interrupting service.
Volante is a perfect fit for many different types of hospitality operations, having been successfully installed in such venues as restaurants, hotels, stadiums, race tracks, ski resorts, universities, outdoor sales areas (patios), casinos, theme parks and pizza chains. Its multi location capability makes it a full enterprise POS solution. For more information, visit www.volantesystems.com.
From a self service perspective, Volante POS Systems has recently announced a partnership with uWink, a new interactive restaurant and entertainment concept from Nolan Bushnell, of Atari and Chuck E. Cheese fame.
The two companies have partnered to offer the "uV Hospitality Solution", an end-to-end self-order, self-pay and at-the-table digital entertainment delivery solution, which was pioneered and proven in uWink's prototype interactive restaurant in Woodland Hills, California.
The "uV Hospitality Solution" is a seamless integration of uWink's innovative touch screen user interface software and micro-transaction game credit and redemption system with Volante's point of sale and back office enterprise system. At the uWink restaurant in Woodland Hills, customers self-order and self-pay for food, drink and digital media, including short form video games (uWink offers a library of 70+ casual and social single-player and multiplayer games) all from tabletop touch screen terminals located at each seat. This technology is really the new wave of self service technology, and was recently awarded Best Technology Innovation from Hospitality Technology magazine.
With the above points in mind, restaurant & hospitality operators should feel even more prepared when looking at new restaurant POS systems. If the POS software you're looking at doesn't offer the features mentioned above, move on. In today's economic times, you can barely afford not to. However, if worse comes to worse, you could always sell that Pac-Man machine.
Promotional Incentives Drive Traffic and Increase Sales
Promotional incentives represent a powerful motivation tool. When used properly, they can increase brand awareness within a target market, drive traffic to a company's website, and create a lift in sales. What's more, they can be integrated easily through point-of-sale freebies, in-pack bonuses, broad market mail drops and a variety of other distribution channels. Promotional incentives are an effective vehicle for tapping into new markets or expanding an existing customer base. They can be used to support customer loyalty programs, motivate sales staff, or launch new products.
In this article, we'll focus on the use of promotional incentives in the context of driving online traffic, increasing brand awareness and lifting sales. As you'll see, these three objectives converge to encourage recipients to take a predefined action.
Using Promotional Incentives To Build Awareness
One of the ongoing challenges that companies face in competitive spaces is to penetrate new markets with their products. Whether launching a new brand or expanding the market penetration of an existing one, companies must find a way to build awareness in their target audience. Promotional incentives offer a cost-effective platform through which to open these new markets.
For example, suppose a sports equipment manufacturer has traditionally catered to high school and college athletes and wishes to penetrate the "over 50" space. By offering promotional incentives designed to reach that specific demographic, the manufacturer can increase brand awareness for select lines of equipment. Similarly, an athletic shoe manufacturer may want to introduce a new line of dress shoes to executives. A cosmetics company might wish to reach a younger audience. In each case, promotional incentives can be tailored to generate excitement and improve market awareness.
Promotional Incentives Drive Traffic And Increase Sales
Traffic and sales are inseparable. Customized promotional incentives can increase the former and generate a boost in the latter. For example, consider a razor company that wants to produce a lift in blade sales within a particular big-box retailer. In-pack promotional incentives offering a free pack of blades can be included with each razor. The customer would be directed to the razor company's website to register for the freebie. A special promo code or coupon could be emailed to the customer directing them back to the retailer for redemption.
Promotional incentives can also be designed to generate online traffic. Mobile promotions content such as wallpaper images, ringtone promotions, and mobile games can be offered free in order to trigger an action within a target market. The predefined action might include an opt-in for future promotions, registration or a purchase decision.
The use of promotional incentives is a proven strategy for driving traffic, increasing brand awareness and lifting sales. They provide a channel through which companies can tap into new markets or further penetrate existing markets. Success is found in the design. The incentives must accommodate audience desire in order to trigger the appropriate response. For companies that wish to generate excitement and sales by delivering relevant value, this form of marketing can be an ideal solution.
The Truth About Bonds
If you are new to investing perhaps you are not familiar with bonds. Before you get started, you need to understand some of the risks associated with bond investing. Most people assume that all interest-bearing securities are completely risk free, but this is not the case. Even if you know a lot about investing, you may not be aware of some of the risk characteristics associated with bonds.
The most important thing to take into account is the interest rate. The Federal Reserve (also known as the Fed) meets every 6-8 weeks to evaluate the health of the economy. At each meeting, the Fed renders a decision regarding interest rates.
If inflation is rising, the Fed will need to raise interest rates to tighten the money supply. If inflation is moderate or contained, the Fed will likely leave rates unchanged. However, if the economy is slowing down and there is very little inflation or maybe even deflation, then the Fed might decide to reduce interest rates to create a stimulus for economic growth.
The reason why you need to consider present and future interest rate levels is because as interest rates increase, bond prices go down, and vice versa. If you are able to hold your bond until maturity, then interest rate movements do not really matter, because you will redeem the principal upon redemption. But often, investors have to cash out their bonds well before the maturity date. If interest rates have moved up since you purchased the bond, and you sell it prior to maturity, then the bond will be worth less than your initial investment.
You should also be aware of the claim status of the bond you are buying. Claim status refers to your ability to liquidate your investment in the event the bond issuer goes bankrupt. If you are buying a government bond, such as a Treasury Bill, claim status is irrelevant, because the odds of the Federal Government going bankrupt are slim and none.
If you are buying a corporate bond, however, there is always a chance that the issuer could go out of business. In the event of liquidation, bondholders are given priority over stockholders. However, there are often different classes of bondholders. Senior note holders can often claim against certain kinds of physical collateral in the event of bankruptcy, such as equipment (computers, machines, etc.). Regular bondholders can not always claim against physically collateral, and are next in line after the senior note holders.
Next, you should always check the three main features of the bond you are buying; the coupon rate, the maturity date, and the call provisions. The coupon rate is the interest rate. Most bonds pay an interest rate semiannually or annually. The maturity date is the date that the bond will be redeemed by the issuer; simply put, the maturity date is when the company must pay back to you the principal you loaned to them. The call provisions are the rights of the issuer to buy back your bond prior to maturity. Some bonds are non-callable, while others are callable, meaning that the company can buy your bond back before maturity, usually at a higher price than what you paid.
Finally, you should also understand that if economic conditions become more favorable after you a buy a bond, and interest rates start to go down again, the issuer will likely issue a lot more bonds to take advantage of the low interest rates, and will use the proceeds to try to buy back any callable bonds it issued previously. So, when interest rates go down, there is an increasing likelihood that your bond will be redeemed prior to maturity, if in fact the bond is callable.
You should invest in bonds. However, you should also take into account the risk factors we have covered. Your portfolio should contain a mix of corporate, federal, municipal, and even junk bonds (there is always a default risk associated with junk bonds, but they pay a huge interest rate). Talk to your broker about diversifying the kinds of bonds in your portfolio and you will reduce your overall risk and maximize your return.