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Trading and Investment Terms


A bond is a loan to a company or government that pays investors a fixed rate of return over a specific timeframe.

A bond is an agreement between an investor and the company, government, or government agency that issues the bond.

For Example:

When you buy a bond, you are lending to the issuer, which may be a Government,



In return, the issuer promises to pay you a specified rate of interest.

Types of Bonds

  • Corporate bonds 
  • Investment-grade
  • High-yield
  • Municipal bonds, called “munis,” Types of “munis” include:
    • General obligation bonds
    • Revenue bonds. 
    • Conduit bonds. 
  • U.S. Treasuries 
    • Treasury Bills
    • Notes. 
    • Bonds. 
    • TIPS.