Saturday 22nd October 2016                 Change text size:

Investment term of the day: bond

dictionary By doctor-a via stock.xchng

Bonds are a form of debt. Essentially they are like an IOU where the investor loans money to a company, the government or another organisation.

The money is paid back in full over a set period of time with regular interest payments. Bonds are commonly referred to as fixed-income securities. Along with stocks and cash equivalents, they are one of the main asset classes.

Investopedia definition

Wikipedia page

Photo: doctor-a via Freeimages

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