Despite its name, a fidelity bond is solely an insurance policy and is neither tradable nor can it accrue interest like a regular bond. It is also known as an "honesty bond."
In Australia a fidelity bond is called "employee dishonesty insurance," and in the U.K. it's called "fidelity guarantee insurance."
Investment dictionary. Academic. 2012.
Look at other dictionaries:
fidelity bond — or fidelity insurance Insurance protecting an employer from losses resulting from the deliberate misappropriation of the firm s assets by one or more of its employees. Fidelity insurance is obtained by most financial institutions. American Banker … Financial and business terms
fidelity bond — see bond 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. fidelity bond … Law dictionary
fidelity bond — Contract of fidelity insurance. Runcie v. Corn Exchange Bank Trust Co., Sup., 6 N.Y.S.2d 616, 620. A guaranty of personal honesty of officer furnishing indemnity against his defalcation or negligence. Phillips v. Board of Education of Pineville,… … Black's law dictionary
fidelity bond — noun : a bond or other form of contract for indemnifying an employer against financial loss due to the dishonesty of an employee see insurance * * * fidelity bond, a bond issued as fidelity insurance … Useful english dictionary
Fidelity bond — A fidelity bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.While… … Wikipedia
fidelity bond — A bond conditioned upon payment of loss resulting from embezzlement by an officer or employee, usually construed as an insurance contract, notwithstanding it is nominally in the form of a contract of suretyship. See fidelity guaranty insurance … Ballentine's law dictionary
fidelity bond — noun An insurance contract that covers an employer against loss due to fraudulent or dishonest employees … Wiktionary
fidelity bond — An insurance policy that provides cover against specified losses occurring from the dishonest acts or defalcations by an employee … Accounting dictionary
blanket fidelity bond — SEC required insurance coverage that brokerage firms are required to have in order to cover fraudulent trading by employees. Bloomberg Financial Dictionary … Financial and business terms
bond — 1 n 1 a: a usu. formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure … Law dictionary