Are highyield securities an acceptable investment for an inv

Are high-yield securities an acceptable investment for an investment club or its members? The questions obviously cover many facets to consider when investing in bonds. You believe that the presentation will be improved if you also illustrate bond investments as part of a tax-deferred retirement account or a means to achieve diversification, so you pose these additional questions:

Solution

High-yield securities are junk bonds with ratings below triple-B. It is very risky to invest in such bonds. Such high-yield securities should not be an acceptable investment for investment clubs or their members.