Bond

Definition

  • 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.

Synonyms
certificate, agreement, 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,
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
  • 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.
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