Bonds

Bonds are financial instruments used by governments, municipalities, and corporations to raise money. When you buy a bond, you are essentially lending money to the issuer in exchange for regular interest payments, typically until the bond matures, at which point the issuer repays the principal amount. Bonds are considered less risky than stocks and provide a fixed income, making them attractive for investors seeking stability. Their value can fluctuate in the market depending on interest rates and the issuer's creditworthiness, but they remain a fundamental component of many investment portfolios.