Investment Glossary

Bond - A bond is simply an IOU issued to an investor in exchange for a loan of money. The company or government issues a bond stating that they promise to pay back the borrowed money, plus interest, at a specified date (maturity date).

There is some risk involved in investing in bonds issued by smaller, start-up companies, who may go bankrupt, however bonds issued by the government or blue chip companies are generally pretty safe investments. On the flip side, investing in riskier start-up companies usually pay more interest (yield) than their safer counterparts.

InvestmentAdvice-USA is an independently owned and operated site. All information contained within this site is deemed to be accurate but is in no way guaranteed. There is always a risk involved with investing and the owner of this site assumes no liability for losses.