InvestorWords.com Term of the Day The term of the day from InvestorWords.com http://www.investorwords.com Term of the Day for November 22, 2009: high yield IW logo
high yield

Description of investments with high rates of return. Generally, a high yield bond will be ranked very low by a rating agency, because these are bonds which have a relatively high chance of default, and therefore have to offer higher returns. Similarly, a stock will offer a high dividend yield in order to compensate for lower expected capital gains, for example a large company in a mature industry which is no longer growing.
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high yield

Description of investments with high rates of return. Generally, a high yield bond will be ranked very low by a rating agency, because these are bonds which have a relatively high chance of default, and therefore have to offer higher returns. Similarly, a stock will offer a high dividend yield in order to compensate for lower expected capital gains, for example a large company in a mature industry which is no longer growing.
Browse Our Entire Glossary | Business Dictionary | Stock Research

Copyright(c) 2009 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited. ]]> http://www.investorwords.com/5901/high_yield.html http://www.investorwords.com/5901/high_yield.html November 22, 2009