I got it.
This is because the home page displays Excerpts
http://codex.wordpress.org/Excerpt.
It is set to cut off of posts after 70 words with a Read More link.
You can use the more tag from the WP editor screen to cut posts before that if you like, else write normally with few amount of words in the first para so that all extra things come after 70 words. Besides, if excerpts were to show HTML content the home page layout will look uneven.
Another solution for you:
You can display full posts on home page with HTML using the below edit:
Open Content.php
Go to line 50
<?php if ( is_home() || is_search() || is_category() || is_tag() || is_author() ) : // Display Excerpts for Search, home, category and tag pages ?>
Replace that line with
<?php if ( is_search() || is_category() || is_tag() || is_author() ) : // Display Excerpts for Search, category and tag pages ?>
Now full posts with HTML will show on homepage, if you want to break posts – use the more tag.