Moving on to a stock's stepbrother... The Bond. Think of this as a loan with a seller and a buyer. If you sold a bond, you would be giving money to a company, and then they would pay the principal amount back plus interest (How you make money). Bond details include -> the end date when the principle of the loan is due to be paid to the bond owner and usually include the terms for variable or fixed interest payments made by the borrower. 

Who can buy and sell bonds?

Governments - Governments at all levels use bonds in order to borrow money. Government's will often need quicker funding for projects such as schools, roads, and other infrastructure. 

Corporations - Similarly corporations will use bonds to raise money to help expand. They may need new equipment, have new projects, or want to buy out another company. This is far more money than a bank can and will provide, meaning corporations can use bonds to help fund their expansions.

Sellers - Almost anyone can buy and sell bonds if you need money for a business or any other expense. Bonds can also be sold to other investors after an initial purchase or issuing date.

Almost all bonds are online so had to use a pic Ronald Reagan took himself 

Let's talk about the money side of bonds. A bonds par value (1) is usually set at $1,000. The actual market price of the bond depends on a range of factors including, credit score, quality of buyer, length till expiration date, interest rates and compared to coupon rates (2) but could range from thousands to hundreds of thousands and more.

A lot of words but stick with me cause this is the last part where we learn what the main types of Bonds are...

• Corporate Bonds - Issues by companies because they typically offer better terms and lower interest rates than banks.

• Municipal Bonds - Issues by states and municipalities (City or Town) that helps fund new roads and other projects.

• Government Bonds - Such as ones issued by U.S. Treasury (more in Treasuries). Bonds issues with...

      1 year or less maturity = Bills

      1 - 10 years maturity = notes

      More than 10 years = bonds

and they are all commonly referred to as treasuries. 

Agency Bonds - Issued by Gov't affiliated organizations such as Fannie Mae or Freddie Mac (Gov't sponsored and buy mortgage loans from banks to keep instant money flowing into the economy).