- A debt instrument, issued for a period of at least one year that pays a fixed rate of interest for a specific period. A bond is an IOU from a corporation or government entity. Corporations and governments borrow money from investors by issuing bonds. Bonds represent debt, as opposed to stocks, which represent ownership in a company. Usually, the principal is repaid at the maturity date.
agreement, certificate, pledge
Related Terms and Acronyms
- Bond Ladder — Definition,
- A series of bonds with different maturity dates, often times evenly spaced over a set period of time.
- Canada Savings Bond (CSB) — Acronym, Canada,
- A secure way for Canadians to save. The bonds, which are a form of debt issued by the Canadian government, are cashable, with proper identification, at any time at most Canadian financial institutions.
- Current Yield — Definition,
- The annual increase in the value of an investment, usually expressed as a percentage.
- Debt Issues — Definition,
- The issuance of bonds or other forms of debt on the public markets.
- Fixed-Return Investments — Definition,
- Investments that provide a stable return.
- Guaranteed Investment Certificate (GIC) — Acronym, Important,
- An investment that pays a set rate of interest over a fixed period of time.
- Investment — Definition,
- Something you put your money into in order to make money.
- Investment Banking (IBK) — Acronym,
- Bank operations that manage a bank's funding position, as well as its holdings of Treasury bills, bonds and preferred and common stock.
- Investments in Affiliates — Definition,
- A situation where an investor has a great deal of control over the operation and/or financial management of his or her investment.
- Issuer — Definition,
- A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
- Maturity — Definition,
- The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
- Maturity Guarantee — Definition,
- A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
- Portfolio — Definition,
- A collection of investments.
- Securities/Investment Dealer — Definition,
- One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
- Security — Definition,
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Segregated Fund — Definition,
- Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
- Stock — Definition,
- A share of the ownership of a company.