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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Passive Income


You work all day hauling bricks for a living. You get paid $18 an hour for doing so. That is NOT passive income. The passive stuff happens every 6 months when you clip your coupon from the $10,000 of bonds you have bought which pay $400 every 6 months. It's income that you don't have to labor for directly.