De obligatie
Example: Veel beleggers kiezen voor de obligatie vanwege het vaste rendement.
Definition
"De obligatie" is a financial instrument representing a loan made by an investor to a borrower, typically a corporation or government, which pays fixed interest over a specified period. Many investors choose "de obligatie" for its steady return and lower risk compared to stocks.
Etymology
The word "de obligatie" comes from the Latin 'obligatio,' meaning a binding or commitment, reflecting the borrower's obligation to repay the loan. It entered Dutch through French 'obligation,' emphasizing the legal promise inherent in bonds.
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"De obligatie" appears in the Vocaplus list "Dutch - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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