Glossary of Terms

The information presented here is not intended as financial, investment, tax or legal advice and is provided for educational purposes only.
Joint Tenants with Rights of Survivorship (JTWROS)
A form of account registration in which two or more individuals share an undivided interest in an account. In the event of ones tenant's death, the surviving tenant(s) automatically inherits the property without the necessity of court proceedings.
Junk Bonds
Speculative, noninvestment-grade debt securities rated BB or below by Standard & Poor's or Ba or below by Moody's. "Junk bonds" are generally issued by corporations of questionable financial strength or without proven track records. Junk bonds, also called high-yield bonds, tend to provide higher yields than investment-grade bonds, but also tend to be more volatile. Compared to higher quality debt securities, junk bonds involve greater risk of default or price changes due to changes in credit quality of the issuer because they are generally unsecured and may be subordinated to other creditors' claims. See Bond Rating and High Yield Bonds.