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.