1) written evidence of debt issued by a company with the terms of payment spelled
out. A bond differs from corporate shares of stock since bond payments are pre-determined
and provide a final payoff date, while stock dividends vary depending on profitability
and corporate decisions to distribute. There are two types of such bonds "registered,"
in which the name of the owner is recorded by the company and "bearer," in which
interest payments are made to whomever is holding the bond. 2) written guaranty
or pledge which is purchased from a bonding company (usually an insurance firm)
or by an individual as security (called a "bondsman") to guarantee some form of
performance, including showing up in court ("bail bond"), properly complete construction
or other contract terms ("performance bond"), that the bonded party will not steal
or mismanage funds, that a purchased article is the real thing, or that title is
good. If there is a failure then the bonding company will make good up to the amount
of the bond.
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