Definition of Baby Bond

Financial Terms Beginning with B

What is a Baby Bond

A baby bond is a bond whose face value or par value is generally $1,000 or less. The intended audience for baby bonds are ordinary investors who may not have large amounts of money to invest, which makes these small-denomination issues attractive to this type of an investor.

US savings bonds, with face values ranging from $50 to $1,000, are considered baby bonds.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Series I Savings Bond

Series EE Savings Bond

Treasury Bond

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