Bonds represent potentially one of the lowest risk forms of investment in the market, particularly if high grade government bonds are purchased or other bonds issued with an investment grade rating. As such, the inclusion of a proportion of bonds may be a wise choice for every diversified investment portfolio.
Buying and Selling Bonds: What are Bonds?
Bonds are simply a form of long term debt issued by a government or company however, instead of going to a bank or financial institution the bond issuer goes directly to the public to raise money in the form of a bond.