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Soc. Studies Vocab.

QuestionAnswer
Diversification To own many different stocks, all in different industries.
Industry A group of companies that make similar products
Portfolio A collection of investments that are owned by one individual or organization
Bonds An IOU that a company or government sells and an investor buys
High-Yield bonds Junk bonds, they are bonds that the issuers pay a high amount of interest to the bondholders.
Issuer An entity which issues that pays principal and interest
Interest Rate Either paid or given, interest is money.
IOU Debt; or to owe money
Maturity The date when a principal amount of security is payable
Risk To take a chance; the possibility of losing all or part of your money
Created by: cochranemr
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