Bond Market
A bond market is a marketplace where bonds are issued, bought, and sold. Bonds are essentially loans to governments or corporations by investors in exchange for periodic interest payments and the return of the principal amount at maturity. The bond market allows these entities to raise capital while providing investors with an opportunity to earn fixed income. Bonds can be bought on the primary market, where they are first issued, or on the secondary market, where existing bonds are bought and sold.
Related Terms
Cash Conversion Cycle
The Cash Conversion Cycle (CCC) measures the days it takes a company to convert inventory...
Long-Term Stocks
Long-term stocks refer to shares that investors intend to hold for an extended period, typically...
Beta Coefficient
The Beta coefficient measures a stock’s volatility relative to the market, aiding investors in assessing...
Deferred Tax Liability
Deferred tax liabilities stemming from temporary differences—when an liability is recorded on the balance sheet...
Backtesting
Backtesting involves testing trading strategies or models against historical data to evaluate their effectiveness. It’s...
Interest Rate Futures
Interest rate futures are derivative contracts based on interest-bearing instruments, such as bonds or loans....
