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Stocks Vocab.2._33

More Selecting Investments Vocabulary

WordDefinition
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 another.
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 the value of an investment.
Bonds An IOU that a company of goverment sells when it borrows money.Bonds are called fixed-income investments because they pay a fixed amount of interest to the bondholder who purchased this IOU.
High-Yield Bonds To attend investors, the issuers of these bonds pay a higher rate and interest than investment grade bonds with the same maturity. They are rated below investment grade bonds and are also called "Junk Bonds."
Created by: kavaleckt