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Glossary entry · What you own
Bond
Definition
A debt instrument: you lend money to an issuer (government, company) for a fixed period. They contractually pay you interest at agreed dates and return the principal when the bond matures.
Example
A 10-year US Treasury bond at 4% pays $40/year on every $1,000 lent, plus the $1,000 back in year 10.
From the lessons
Lesson · 03
Bond
This term appears in a longer lesson, where the idea gets the proper treatment with examples and a working visualization.
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What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
Read →Index fund
A fund that simply mirrors an index, instead of trying to beat it.
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