Junk Bond – a bond that pays interest at a high rate because of significant risks — often issued to raise money quickly in order to buy the shares of another company

junk bond:
(1974)

1. A bond that pays interest at a high rate because of significant risks — often issued to raise money quickly in order to buy the shares of another company.

2. See high-yield bond. [1]

1. Corporate bonds that are below investment quality, that is, a high-risk investment.  As with high-risk investments generally, junk bonds yield a high rate of interest. [2]

References:

Disclaimer: All material throughout this website is compiled in accordance with Fair Use.

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6

[2]: Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine 
(James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.

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