Debt

Debt Meaning:
What is owed by one party to another. Debts usually come with interest, so that the amount that must be paid back grows over time, and with a date by which the debt must be repaid in full.

Debt Example:
Companies and governments use debt to finance their operations. One way they do this is by issuing bonds, also known as ‘debt securities.’ Bonds amount to a loan from the bondholder to the issuer with an agreed rate of interest and a date by which the principal must be repaid.