NextPrevious

Savings and Investments

Bonds

Is owning a bond like owning a stock?

No, when you own a stock, you actually own a piece of the company, its assets, and profits. But when you own a bond, you are in effect giving the issuer a loan, for which they pay you interest on the loan and your principal back when it is due.



Close

This is a web preview of the "The Handy Personal Finance Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App