A bond is often interpreted as a debt instrument, which can be issued by the government or by private companies. Bonds are included in the class of securities that can be traded on the money market. Each bondholder will receive interest annually. Do you think bonds will be suitable for novice investors?
What is a Bond?
- Thread starter Suba
- Start date
A bond could be applicable to a small business owner or enterprise. A small business can apply for small business bonds. A bond is like a loan, but instead of borrowing funds from the bank, a business borrows from everyday investors.
It is true that bond is a debt instrument that are used by companies on employees who has taken loans.
A bond is a debt security, where an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. The entity then repays the principal amount of the loan at the maturity date.
