INVESTMENT GRADE Definition

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INVESTMENT GRADE, in securities, is a high credit rating indicating bonds generally considered to have the strongest possi­bility of paying interest and repaying principal when due. Standard & Poor's Corporation considers invest­ment grade bonds to be those it rates from AAA through BBB. Moody's considers investment grade to be from AAA to Baa3. Below investment grade bonds also are known as high yield or junk bonds. The NAIC designates investment grade bonds with the numerical rating of "I" or "2".

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BALANCE is: a. equality between the totals of the credit and debit sides of an account; or, b. the difference between the totals of the credit and debit sides of an account.

RESERVE CAPITAL is that part of the nominal (current value) of a business that has not yet been called up. It is thus a reserve, which can be drawn on in case of need.

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