What Are Bonds?
While the investing world is often found preoccupied with discussing the stock market, serious investors understand the relevance and importance of bonds and the role played by the bond market.
In simple terms, a bond as an instrument represents a loan given by the investor to the bond instrument issuer. It is a debt for which a return is promised, either at a variable or fixed rate. Unlike stocks, bonds do not come with any ownership in the borrowing entity. It is simply debt security that represents a loan made by an investor to the borrowing entity.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased