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WordNet-Online
Definitions from WordNet
Noun junk bond has 1 sense
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Definitions from the WebJunk BondNoun: A type of high-risk bond with a lower credit rating, typically issued by companies with poor financial stability. Sense 1: A financial instrument that offers higher yields to investors in exchange for the increased risk associated with investing in a company with a less favorable financial status. Example sentence 1: The investor decided to purchase junk bonds issued by the struggling company, hoping to earn higher returns despite the increased risk involved. Example sentence 2: Many investors were attracted to the alluring yields offered by junk bonds, although they understood the substantial risk associated with such investments. Sense 2: Informal term used to describe a worn-out or worthless security or investment. Example sentence 3: After conducting thorough research, the financial analyst concluded that the stock in question was nothing more than a junk bond, advising clients against investing in it. Example sentence 4: The market crash resulted in many stocks turning into junk bonds overnight, causing substantial financial losses for investors. Possible related products on Amazon: | ||||
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