A bond is a fixed-income investment where an investor lends money to a government, company, or other organization for a specified period.

In return, the issuer agrees to pay regular interest payments and repay the principal amount when the bond matures.

Bonds are generally considered less risky than stocks, although they still carry risks such as inflation, interest rate changes, and issuer default.

Many investors use bonds to generate income and help balance the risk of a diversified portfolio.