Corporate Bond

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Corporate Bond.

A type of debt security that is issued by a firm and sold to potential investors.  In this system, the company receives the capital it needs, and the investors are paid a pre-established number of interest payments (with a fixed or variable interest rate).  When the bond expires (or “reaches maturity”), payments cease and the original investment is returned to the initial investors.