What is a Bond?
The speaker discusses the general purpose of abond. He talks through how companies will borrow money from investors by issuing bonds. Instead of borrowing a huge sum of money from one entity, which may not be obtainable, companies (issuers) can issue bonds with a much smaller face amount; thereby, allowing companies to have a broader base of investment sources. Bonds reflect an underlying debt or loan which gives the investor a return on investment which is reflective of the issuers financial position, credit rating, and other financial health metrics.