Back to Basics: What Exactly is a Bond?

January 12, 2012

Last week, we discussed how to invest by buying a stock and becoming an owner of a company. This week, we’ll take a look at becoming a loaner instead. The first experience most people have as a loaner is with a bank. You loan the bank money by making a deposit, your money earns some interest, and you can withdraw it. You can also go to the bank to borrow money for something like a car or a home. Continue reading “Back to Basics: What Exactly is a Bond?”