What is 'Junk Bond'? | Freetrade Dictionary

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

More terms

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Costs and Charges

The money you pay when investing.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Fundamentals

The data or information that is likely to impact a company's stock price.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Capital

Learn what financial capital means

Depository

We look at what is a depository and what role they play in keeping markets work.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

52-week high/low

The highest, or lowest, price a share has traded at in a passing year.

Junk Bond