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Unit 2: SIV

Selecting Investments Vocab

WORDDEFENITION
Diversification An Investment strategy in which you spread your investment dollars among industry sectors.
Industry A group of companies that make the same products.
Portfolio A collection of investments owned by one individual or organization.
Risk The chance of losing all or part of the value of an investment.
Bonds An IOU that a company or government when it borrows money. Bonds are called fixed-income investments because they pay a fixed amount of interest to the bondholder who bought this IOU.
High-Yeild Bonds To attract investors, the issuers of these bonds pay a higher rate of interest than investment
Created by: vondrasan
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