What is Bond (finance)?
A '''bond''' is a [[contract]] between two parties (companies or government.) [[Company|Companies]] or [[government]]s issue bonds because they need to borrow large amounts of [[money]]. They issue bonds and [[investment|investors]] buy them (so giving money to the people who issued the bond). Bonds have a [[maturity]] date. This means that at some point, the bond issuer has to pay back the money to the investors. They also have to pay the investors a bit more than they paid for the bond. Bonds are used when needed to keep the company running smoothly. It is protection if their [[stock]] drops drastically. Bonds are usually traded through [[bank]]s and other financial entities and are part of a financial instrument group called [[Fixed Income]]. [[Bank]]s and [[finance|financial institutions]] offer [[loan]]s on different terms against the [[security]] of [[asset]]s. Simply put, a bond is a receipt given by a government or organization as an agreement to borrow money from another organization which will be returned at a later date with certain amount of interest or increment. {{stub}} [[Category:Finance]]