A bond is a type of investment that is considered more secure and less volatile than stocks. It is basically an IOU from a company or a government agency, borrowing money from you, the investor, and usually promising to pay interest. Then, after an agreed-upon amount of time, the company or government agency will pay you back the money you put in.
Good deal, right?
There are so many different types of bonds, more than I want to go into in this post, but for now, it’s good just to understand that a bond is another way for a company or a government agency to raise money from investors.
Do you have any experience with bonds? What kinds of bonds have you heard of? Let me know in the comments!
And as always, thanks for reading this. We are bonding!
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