Investor Glossary-flight to qualityInvestor Glossary-flight to qualityInvestor Glossary-flight to qualityInvestor Glossary-flight to qualityInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Flight To Quality

The HTML to link to this page

Flight to quality refers to investors moving investments into low-risk securities during times of economic or political uncertainty. Flight to quality can be caused by anything from a war to a change of fiscal policy to a recession. A flight to quality may include moving investments into blue chip stocks or out of low-rated bonds and into AA or AAA bonds. For many investors a flight to quality means switching investments into Treasury Bonds back by the U.S. government. In today's global economic environment a flight to quality often means transferring funds from a risky country to a safer country. A flight to quality often results in a decrease in the yield of government securities because of the sudden increase in demand. A flight to quality often results in a relative increase in the yield of riskier investments.

Rate this flight to quality definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: covered put, risk management, average price per share, deferred tax, dividends payable, retained earnings, 144a, 1031 exchange, diluted share, reverse mortgage, class C shares, inflation, Zero Cost Collar, FICO score, stock split, ex-dividend, quality assurance, in escrow, limit order, phantom income, annual return, 1035 exchange, APR, irrevocable trust, option premium, deferred revenue, VIX, Key Rate Duration, 401a, real GDP, EBITDA, LIBOR, margin rate, current ratio, stock market close, cancelled check, ex-dividend date, balance sheet, liquidity ratio, required rate of return, FTSE, labor relations, wholly-owned subsidiary, implied volatility, per diem, command economy, debt service coverage, open position, minority interest

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use