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Falling Angel and Falling Knife

FiverrFalling Angel

Fallen angel  is a type of bond or stock which was considered an investment grade but lost its low risk status and now considered as junk bond or stock.Investment grade is a normally very low risk investment option and most of investors prefer these types of investments.

The investment grade bonds/stocks are very high rated bonds and their ratings are managed by the credit rating agencies such as Standard and poor’s.The top rated bonds have ratings of “AAA” .The low rated bonds have “CCC” rating and they are called junk bonds.

Falling Knife

Falling knife is a type of  stock whose current price has fallen drastically in very short time period.The stock of a bankrupt company can also lose its value as investors have lost their interest in that stock.The negative investor sentiment can also cause stock to lose its value in a very quick time.

 

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About Emaad Qureshi