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Investment Risk |
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Investment RiskUncertainty about the future benefits to be realized from an investment.Investment Risk Similar MatchesReal Estate Investment Trust (REIT)Real Estate Investment Trust (REIT)REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund. Investment gradeInvestment gradeA credit rating given to a government or coporate bond which indicates that the agency giving the rating (Standard & Poor's, Moody's or Fitch) thinks the issuer has strong creditworthiness.The grades used by two of the leading agencies are as follows:Moody's Aaa / S&P AAAThe highest-quality, lowest-risk bondsMoody's Aa / S&P AAHigh-quality debt obligations with minimal repayment riskMoody's A / S&P AQuality bonds with a strong capacity to pay interest and principal which are somewhat susceptible to adverse economic conditionsMoody's Baa / S&P BBBQuality bonds with a adequate capacity to pay interest and principal which are more vulnerable to adverse economic conditions bondsMoody's Ba / S&P BBMedium-grade bonds with few desirable characteristicsMoody's B / S&P BSpeculative bonds with a major degree of risk in adverse economic conditionsMoody's Caa / S&P CCCIssuers in poor standingMoody's Ca / S&P CCIssuers may be in defaultMoody's C / S&P CIncome bonds on which no interest is being paidS&P DBonds in default All those at Baa/BBB or above are adjudged 'investment grade'. Investment Advisers ActInvestment Advisers ActLegislation passed in 1940 requiring financial advisers to register with the Securities and Exchange Commission. The measure was enacted to protect the public from fraud or misrepresentation by Securities and Exchange Commission advisers. Local authority investmentLocal authority investmentA bond issued by a local authority in order to raise capital for its budget. Recognised Investment ExchangeRecognised Investment ExchangeAn investment exchange which meets the requirements for recognition under the Financial Services Act 1986 and is approved by the Financial Services Authority (FSA). Further SuggestionsInvestment philosophyinvestment business Community Reinvestment Act (CRA) Target investment mix Investment manager investment Investment Valuation Model (IVM) Net investment Association of Investment Trust Companies Investment letter ethical investment split capital investment trust Passive investment management Investment Company with Variable Capital Leveraged investment company Systematic investment plan Reinvestment Underinvestment problem Reinvestment effect Foreign investment risk matrix (FIRM) Short term investment services Direct Foreign Investment Mutually exclusive investment decisions Normal investment practice investment income |
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