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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Moody's

Definition:

One of the big three agencies that rates securities.

Want to buy Star Wars Corporation stock and are wondering whether it’s a good deal? The idea is that Moody’s has done all the boring research for you and lets you know whether the security is a high risk or a good risk.

The problem? Back in the 2000s, some people accused Moody’s and the other big agencies of giving everyone a passing grade. That led to the Credit Rating Agency Reform Act of 2006.