Rookie's Day Trader Blog

Most people of the older generation remember bonds as the Government Savings Bonds that we bought through our payroll deduction plan at work. These type of bonds are issued by the governmant as part of a citizen's savings plan that supports the government financial basis.  Unfortunately, in the USA, the Government Savings Bond program is almost dead in commercial businesses.

However, the more common bonds the we hear about today are Munucipal Bonds issued by our local cities to raise money for some public works project within the city.

Basically, bonds are pieces of paper, much like our currency, that have a value assigned to represent a certain amount of money.  Organizations sell them in order to raise large amounts of money.  At a later, predetermined date, the issuing organization will buy them back plus pay an interest amount to the seller.

Bonds are not normally traded on the usual stock exchanges.  They are traded through special Bond Markets.

There are so many companies, countries, and other organizations selling bonds plus there are mny different types of bonds.  It's impossible to list them all here.

The bond market can be a very confusing place.  Look here for more information.