Bond Definition & Meaning | Financial Term | CSIMarket
CSI Market
Sign In | Register

Glossary

Bond

Financial Term

Bond, also known as a fixed income security, is a debt instrument that is issued by a borrower, typically a corporation, government or municipality, to raise capital. When an investor purchases a bond, they are essentially loaning money to the issuer for a specified period of time, with the expectation of receiving regular interest payments on a predetermined schedule.

In the financial industry, bonds are commonly used as a means of diversifying investment portfolios and managing risk. Bonds are generally considered to be less risky than stocks, since they are backed by the creditworthiness of the issuer and provide a predictable stream of income. Additionally, bonds can help to offset any losses that may be incurred in other areas of a portfolio.

There are several types of bonds used in the financial industry, including government bonds, corporate bonds, and municipal bonds. Each of these types of bonds has its own unique characteristics and risk profile, and investors must carefully consider their options before making an investment.

Overall, bonds play an important role in the financial industry as a means of raising capital, managing risk, and providing income to investors.


More Glossary Terms Beginning with B
  • Backlog
    Unfilled customer orders for products and product services Operating Statistics
    Manufacturing Term Letter: B
  • Balance of payments
    Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).
    Economy Term Letter: B
  • Balance on current account
    Current receipts from the rest of the world less current payments to the rest of the world, formerly called "net foreign investment." Current receipts equal exports of goods and services plus income receipts from the rest of the world; current payments are the sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the
    Economy Term Letter: B
  • Balance on goods and services
    Record of the difference between exports of goods and services and imports of goods and services. In the broad sense, this balance is conceptually equal to net exports of goods and services, which is a component of gross domestic product (GDP).
    Economy Term Letter: B
  • Balance Sheet
    A summary statement that reflects the companys assets, liabilities and equity at a particular point in time. Balance Sheet
    Financial Term Letter: B
  • Balloon Angioplasty
    also known as percutaneous transluminal coronary angioplasty (PTCA), is a nonsurgical method of clearing coronary and other arteries blocked by atherosclerotic plaque, fibrous and fatty deposits on the walls of arteries. A catheter with a balloon-like tip is threaded up from the arm or groin through the artery until it reaches the blocked area. The balloon is then inflated, flattening the plaque a
    Health Care Term Letter: B
  • Barrel
    Barrel, which is equal to 42 U.S. gallons and is a common measure of volume of crude oil and other liquid hydrocarbons.
    Energy Term Letter: B
  • Basic Cards-In-Force
    Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers. Non-proprietary basic cards-in-force includes all cards that are issued and outstanding under n
    Financial Term Letter: B
  • Basic Net EPS
    The companys earnings divided by the average number of shares outstanding for the period. Statement of Income
    Financial Term Letter: B
  • Basis
    The difference between a reference or benchmark commodity price and the corresponding sales price at various regional sales points.
    Financial Term Letter: B
  • Basis Point
    One one-hundredth of a percentage point.
    Financial Term Letter: B
  • Basis-Only Swap
    A derivative that "swaps" the basis between two sales points from a floating price to a fixed price for a specified commodity volume over a specified time period. Typically used to fix the price relationship between a geographic sales point and a NYMEX reference price.
    Financial Term Letter: B