We talked a little bit about stocks, now it’s time to discuss what bonds are. Unlike stocks, with bonds you do not own a piece of the company, instead you are giving the company a loan. Typically what happens is the company (issuer) will issue you a bond that states the annual interest rate it will pay you and for how long. Then at the end of the loan term (also known as the maturity date)  they will pay you back your principal (the amount you initially loaned them). This is a good source for a fixed income.

Bonds in general are a beast and a bit more complicated to discuss than stocks. It would take more than a couple of paragraphs to really explain bonds and all of their complexities. With that being said, I am linking to a great tutorial that really breaks it down. Check it out here

If you have any additional questions definitely feel free to leave a comment below or reach out directly.