The difference between stocks and bonds
OTHER SECURITIES TRADED ON MSE
On the Macedonian Stock Exchange, issuers can submit other securities for trading such as bills, notes, CD’s etc. Currently on MSE only Treasury bills (T-bills) issued by the Ministry of Finance of the Republic of Macedonia are traded on a separate market segment.
In general, treasury bills are very similar to government bonds, except that they are a short-term instrument. Likewise, T-bills do not yield interest, but are issued with a discount, which, in turn, makes your earnings equal to the difference between the purchase price (e.g. 95) and the sale price (always 100) of the T-bill. The government will always pay 100 for a treasury bill, while when selling, the price is e.g. 95. In terms of their maturity, treasury bills issued and submitted for trade on MSE are three types: three-month, six-month and twelve-month. Their turnover on the Macedonian Stock Exchange is very low.