L'obligation
Example: L'obligation d'État garantit un revenu fixe aux investisseurs.
Definition
"L'obligation" in finance refers to a debt security issued by a government or corporation that guarantees investors a fixed income over a specified period. It represents a loan made by investors to the issuer, who promises to pay back the principal with interest.
Etymology
The term "l'obligation" comes from the Latin word 'obligatio,' meaning a binding or legal duty. It evolved through Old French into modern French, reflecting the concept of a formal commitment or bond, much like the financial instruments it now describes.
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"L'obligation" appears in the Vocaplus list "French - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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