In Graphics: What Is a Bond?

Investing Advice

Ever notice how nobody ever says “bonds and stocks”? In fact, ever heard anyone bring up bonds at a party and seen his listeners stick around? The more animated conversations always tend to revolve around stocks. Today, we’re putting the supposedly safe-and-boring part of your portfolio in the spotlight. The bond market is way bigger than the stock market and it’s time to get schooled, Bonds 101 style. In this infographic, we’ll
walk you through how owning bonds makes you a little like a bank; the different kinds of bonds you’ll meet in your financial neighborhood; how to tell safe bonds from junk bonds; and why savvy Susie isn’t “interested” in buying Bob’s $1,000 bond for $1,000. Ah, bond humor!

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