Glossary of Investment Terms

Welcome to the Investment Glossary. We hope you find these terms useful. Should you have a term you would like addressed, please let us know. We would be happy to add it to our list.

Yield Curve A curve on a graph that plots the interest rate (yield) of a bond on the vertical axis and the length of time until maturity on the horizontal axis. Their relationship is frequently referred to as the yield curve. Three basic types of curves exist. A normal curve is when interest yields are higher for longer term bonds and lower for shorter term bonds. A flat curve is when yields are about the same for longer term and shorter term bonds. Finally, an inverted curve is when the short term yields are higher than the yields on longer term bonds.