Bond

A bond is a type of loan that investors make to a government, company, or other organization. In simple terms, when you buy a bond, you are lending money and expecting to be paid back with interest. Bonds are important because they help governments and companies raise money, and they give investors a way to earn regular interest. Bond prices and interest rates are closely connected, so investors watch bonds to understand borrowing costs and market expectations. For example, if a government sells bonds to raise money for public projects, investors can buy those bonds and receive interest payments over time. A bond is not the same as a stock. A bond usually represents money lent to an organization, while a stock represents ownership in a company.