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Bond
Glossaries
| Term | Main definition |
|---|---|
| Bond | A loan investors make to a corporation or government. Bonds generally pay a set amount of interest on a regular basis. They’re an appropriate investment vehicle for conservative investors who don’t feel comfortable with the risk involved in investing in stocks and who want to receive a steady income. All bonds have a maturity date when the bond issuer must pay back the bond at par (full) value to the bondholders (lenders). Bonds should not be your primary long-term investment vehicle, because they produce little real growth on your original investment after inflation is factored in.
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