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Social Studies

QuestionAnswer
Diversification An investment strategy in which you spread your investment dollars among industry sectors. Reducing risk by combining different investments whose prices aren't likely to move in step with one other.
Industry A group of companies that make the same products;i.e pharmaceutical companies.
Portfolio A collection of investments owned by one individual or organization.
Risk The chance of losing all or part of an investment.
Bonds An IOU that a company or government sells when it borrows money. Bonds are called fixed income investments because they pay a fixed amount of interest to the bondholder who purchases this IOU.
High Yield Bonds To attract investors, the issues of these bonds pay a higher rate of interest than investment grade bonds with the same maturity. They are rated below investment grade bonds are also called junk bonds
Issuer An entity which issues and is obligated to pay principal and interest on a debt security.
Interest rate Compensation paid or to be paid for the use of the money. Interest is generally expressed as a percentage rate.
IOU Means as it sounds I owe you means debt too.
Created by: turkma
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