Stock
Ownership in a company.
Investing
A bond is a loan from the investor to a government or company, usually with promised interest and repayment terms.
Investing 101 • 04
The issuer may be a government, company or other organization.
Those terms can include the face value, interest payments and a maturity date.
Ownership in a company.
A lending relationship with an issuer.
Changes in market interest rates and the issuer’s credit quality can affect what another investor will pay for the bond.
Remember this
The payment terms may be defined, but the market value and risk can still change.