A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Treasury BondA long-term loan to the U.S. government that pays fixed interest and is considered very low risk.
- Treasury NoteA U.S. government loan that matures in two to ten years and pays interest every six months.
- Money Market FundA low-risk fund that invests in short-term, high-quality debt and aims to keep a stable share price.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Cash EquivalentA safe, short-term investment that can be converted to cash quickly, such as a money market fund or Treasury bill.
- Government BondA loan to a national government, generally seen as low risk because it is backed by the government's ability to tax.
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Plain-English education — not personalized legal, tax, or investment advice.