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

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Gross Margin

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

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Depository

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

Accounting standards

The rules a company follows when preparing financial statements.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Bull market

We explain what a 'bull market' means

Junk Bond