Definition

A loan you give to a company or government that they promise to pay back with interest, making you the bank for once. Bonds are considered safe and boring, which is exactly what your money deserves after what you put it through with crypto.

Example Usage

"I bought government bonds. My financial advisor called it a smart, conservative move. My friends called it the financial equivalent of khaki pants."

Related Terms

Beginner

sunk cost

Money already spent that cannot be recovered and therefore should not factor into future decisions, though humans are psychologically terrible at ignoring it. Your brain keeps asking 'but what about the money we already spent?' and economics keeps answering 'it's gone, move on.'

💰 Finance / Accounting
Intermediate

Accelerated Depreciation

A method that front-loads depreciation expenses in early years of an asset's life, providing larger tax deductions sooner. It's the accounting equivalent of eating dessert first, with the IRS's blessing.

💰 Finance / Accounting
Intermediate

parity

The state of being equal or equivalent, whether in prices, power, or purchasing ability across markets. In finance, it's used for everything from currency exchange rates to comparing values between different assets. Economists love this word because it makes 'same-same' sound sophisticated, and it's fundamental to understanding why your dollar doesn't buy as much abroad.

💰 Finance / Accounting
Advanced

Fiduciary

A person legally obligated to act in your best interest, which is a beautiful concept that works perfectly until money is involved. It is like having a best friend who is contractually required to not steal your lunch.

💰 Finance / Accounting⚖️ Legal
Advanced

backwardation

A commodity market condition where near-term futures prices exceed longer-dated ones, suggesting immediate scarcity. The market's way of saying 'we need this stuff NOW,' convenience premium included.

💰 Finance / Accounting
Intermediate

perpetual inventory

An inventory tracking system that continuously updates quantities with each transaction in real-time, as opposed to counting everything periodically and hoping nothing walked away. It requires technology, discipline, and faith that employees actually scan items.

💰 Finance / Accounting

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See “Bond” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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