Stocks Vocab.2._33 Word Scramble
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Word | Definition |
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." |
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