John Barrett draws on more than a decade of experience providing financial services to counties and municipalities across New Jersey. One of the municipalities for which John Barrett has worked includes Hamilton Township in Mercer County in New Jersey. In this capacity, he served as the director of finance and chief financial officer and was in charge of their capital expenditures, which included the issuing of notes and bonds.

Bonds are one way for businesses to raise funds. A bond is a transaction between an investor and a company, in which the investor loans the company a particular amount of money for a set length of time. The investor is compensated with periodic interest payments and is reimbursed when the bond matures.

Like stocks, bond values vary when they are issued. If the buyer retains the bond until it matures, the swings won't affect their interest payments or face value. They can simply receive interest payments on a bond while waiting for it to mature. Bonds also can be purchased and sold on the secondary market. When buying and selling bonds, it is important to keep in mind that the price is no longer the bond's face value. When it comes to bond selection, the bond's susceptibility to value fluctuations is crucial.