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bonding definition - finance
The process of carefully checking an employeeÂ’s background and then taking out insurance to protect the com-pany against theft or fraud losses caused by that employee. Financial firms or other companies whose employees handle cash are some of the firms that bond their employees.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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