Are bonds and securities the same thing?

Bonds and securities are not the same thing, though bonds are a type of security. Securities encompass a broad range of financial instruments, including stocks, bonds, options, and mutual funds, that represent ownership or creditor relationships. Bonds specifically refer to debt instruments issued by entities like governments or corporations to raise capital, where the issuer promises to pay back the principal along with interest. In summary, while all bonds are securities, not all securities are bonds.