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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

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Withholding Tax

A tax deduction made at the source of the payment.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Clean price

The quoted price of a gilt, which excludes accrued interest

Securities

Bonds and stocks.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Oligopoly

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

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

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