Series 7 Exam Prep FREE Intro to Bonds

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A bond is a type of debt security that represents a loan made by an investor to a borrower (typically a corporation or government). The borrower agrees to pay back the loan, with interest, at a future date. When you buy a bond, you are essentially lending money to the issuer in exchange for periodic interest payments and the return of principal at maturity.

Bonds are considered to be relatively low-risk investments, but they generally offer lower returns compared to more risky investments such as stocks. They are often used as a way to preserve capital or generate income. There are many different types of bonds, including corporate bonds, government bonds, and municipal bonds.