What are bonds?

Business & Management
#1

A bond is an interest-bearing security issued by governments, companies and some other organisations. Bonds are an alternative way for the issuer to raise capital to selling shares or taking out a bank loan.
Like shares in listed companies, once they have been issued bonds may be traded on the open market.
Bonds are regarded as a lower risk investment. government bonds, in particular, are highly unlikely to miss their promised payments.