The buying and selling of bonds began during the Renaissance. At first, Italian cities required their citizens to purchase bonds in order to pay for wars and hire soldiers to protect the city. Eventually, though, the bond market had great appeal to investors, who eagerly bought bonds even in times of peace. Why did bonds have such a great appeal to Renaissance investors?
Investors liked buying bonds because they felt they were also supporting their city.
Bonds were less risky because they could be sold to another investor at any time.
The sale of bonds insured that taxes would not be raised on the wealthy.
Bonds were easier to understand than other types of investments.
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