Moody's Term category: Companies In 10 words or less: A company that rates bonds and preferred stocks based on risk.
Definition: Moody's is an independent research company that rates bonds and preferred stocks based on the risk that the issuing organization can't repay the lenders.
StockJargon Advice: Moody's provides a very valuable service to investors in bonds. They do all the research to determine how likely or unlikely a company or government is to repay their debts. Companies that have high ratings are considered investment grade, whereas low ratings are given to "junk bonds."
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