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Glossary entry · What you own
Treasury
Definition
Debt issued by a government — in the US, by the Treasury Department. Considered the lowest-risk investment in the world (governments rarely default in their own currency). Comes in various maturities: T-bills (under 1 year), T-notes (2-10 years), T-bonds (20-30 years).
Example
A 10-year US Treasury bond at 4.5% pays $45/year on every $1,000 lent, plus the principal back at maturity.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
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.
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