Performance bond

Definition:

A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled. Usually part of a construction contract or supply agreement.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Dedicated capital

Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

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