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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.

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Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.
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Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.
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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.
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American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.
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Diversification

An investment strategy in which money is put into a variety assets.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Fundamentals

The data or information that is likely to impact a company's stock price.
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Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.
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Arithmetic Mean

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