treasury
The part of the United States government that borrows money on behalf of the country by selling bonds and notes to investors. When you buy one, you are lending money directly to the federal government.
Where it is explained in full
When size changes the answer: ten dollars, ten thousand, and a hundred million are not the same money. Arithmetic scales in a straight line. The world does not. Past certain sizes, insurance runs out, prices move against you, rules change, and the cheap thing becomes expensive or the expensive thing becomes cheap. This page names the lines.
Bonds and Treasuries: lending money, with a price that moves. A bond is a loan you make. The interest is fixed, the price is not, and the relationship between the two confuses nearly everyone the first time.
Cash secured puts and the wheel. Selling a put with cash set aside is a paid promise to buy stock at a price you chose. The wheel chains that promise to a covered call. Both deserve a full accounting.
Spreading it out and betting big: what each one protects you from. Owning many things removes one kind of risk and leaves another one completely untouched. Knowing which is which keeps the word from turning into a slogan.
Inflation: the quiet subtraction. A number that grows can still buy less. Real return is what you earned minus what prices did, and the arithmetic is slightly less obvious than subtraction.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Treasury bill
Government debt of a year or less, sold at a discount.
- Treasury Inflation Protected Securities
Treasury Inflation Protected Securities, or TIPS, are bonds sold by the United States government where the amount you are owed automatically increases when prices across the economy rise over time. This protects your savings from losing purchasing power as everyday goods become more expensive.
- Treasury note
A Treasury note is a loan you make to the United States government that lasts between two and ten years. The government pays you interest twice a year and returns your money when the time is up.
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