/

Junk Bond

Junk Bond

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

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

More terms

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Yield to maturity (YTM)

What is yield to maturity and why is it useful?

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

SPAC

Find our what a SPAc or special purpose acquisition company is.

Volatility

A measure of how much the prices of an asset or index vary over time.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.