Note
Definition of 'Note'A financial security that generally has a longer term than a bill, but a shorter term than a bond. However, the duration of a note can vary significantly, and may not always fall neatly into this categorization. Notes are similar to bonds in that they are sold at, above or below face (par) value, make regular interest payments and have a specified term until maturity. |
|
Investopedia explains 'Note'U.S. Treasury notes, for example, are sold in $100 increments; come in terms of two, three, five, seven and 10 years; pay interest in six-month intervals; and pay investors face value upon maturity. There are numerous types of notes, including mortgage-backed notes, unsecured notes, municipal notes, bank notes, euro notes, promissory notes, demand notes and structured notes. |
Related Definitions
Articles Of Interest
-
Exchange Traded Notes - An Alternative To ETFs
ETNs offer yet another way to track an index. Find out what they have to offer, and what's at stake. -
Promissory Notes: Not Your Average IOU
These may be a handy way to borrow money, but this convenience does not come without risk. -
Retail Notes: A Simpler Alternative To Bond Funds
These securities are meant to be held until maturity, removing the burden of complex pricing that sometimes plagues bonds. -
Principal-Protected Notes: Hedge Funds For Everyday Investors
PPNs guarantee to return at least 100% of the original investment and have the potential to return much more. -
The History Of Money: From Barter To Banknotes
Money has been a part of human history for at least 3,000 years. Learn how it evolved. -
What's the difference between bills, notes and bonds?
Treasury bills (T-Bills), notes and bonds are marketable securities the U.S. government sells in order to pay off maturing debt and to raise the cash needed to run the federal government. ... -
Bond Basics Tutorial
Investing in bonds - What are they, and do they belong in your portfolio? -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Why You Should Invest In Municipal Bond ETFs
These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings. -
What is a triple tax-free municipal bond?
At its core, a triple tax-free municipal bond is just like any corporate bond: it is a debt instrument, a loan given to a government authority or municipality in order to help it meet certain ...
Free Annual Reports