Bonds are essentially certificates which confirm that you have made a 'loan' to a company, or to the government, in that you have invested money in them without receiving a share in their profits (a share certificate) in exchange. These bonds can either be repaid to you at an agreed time with interest, or repaid to you at an agreed time based on their stock market-linked value.
There are a variety of bonds available for investors, and each type has its own terms, conditions, and associated risks. It is important to decide whether you are prepared to risk the capital you invest, and if so, how much risk you are willing to accept. For details of higher risk bonds, see Stock Market-Linked Bonds. There are a range of bonds available which offer greater security; usually these are not dependent on the stock market for their value or returns, and your original investment will be increased in line with inflation to ensure your capital retains its buying power.
For more information see:
> Bonds
