High-yield bonds

High-yield bonds, also called junk bonds, pay higher interest rates because they're issued by companies with lower credit ratings. These businesses carry increased risk of default, so they must offer better returns to attract investors. The higher interest compensates you for taking on more risk. Some high-yield bonds turn out to be positive investments, but others default, leaving investors with losses. They might appeal to experienced investors who are comfortable with higher risk.

Read more about bonds

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Popular terms

Alternative Investment Market (AIM)

The junior marketplace of the London Stock Exchange, acting as a way for small and medium-sized growth companies to access investors. There are weaker regulatory requirements for companies that want to list on the AIM compared to the Main Market, which can mean less protection for investors.

AJ Bell offers dealing within the AIM market via our investment platform.

Aquis Stock Exchange

An alternative junior marketplace to the Alternative Investment Market (AIM), offering a place for small and typically less mature companies to trade their shares. This is separate to and not owned by the London Stock Exchange.

Companies listed on the Aquis Stock Exchange tend to be at a very early stage of development with low levels of liquidity and little or no trading history, making them harder to buy or sell – and therefore a riskier investment.

AJ Bell offers dealing within the Aquis Stock Exchange via our investment platform.

Ask price

The ask price represents the lowest amount a seller will accept when you're looking to purchase a share or investment. When you're ready to buy through your AJ Bell account, this is the figure you'll pay. It's set by sellers in the market, and you'll see it displayed clearly before you confirm any purchase. The ask price moves throughout the trading day as market conditions change, and different sellers enter or exit positions.

Learn more about how investments are priced