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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Risk Averse

Definition:

Risk-averse people don't want to take unnecessary risk. They wear knee pads when walking up hills and bike helmets in classrooms—just in case.

When these folks want to invest, it's best to set them up with bonds and T-bills. The poor dears can't handle the ups and downs of high-risk stocks.