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fallen angel

 - 2 dictionary results
Financial Dictionary

Fallen Angel

1. A bond that was once investment grade but has since been reduced to junk bond status.

2. A stock that has fallen substantially from its all time highs.

Investopedia Commentary

There is a fine line between fallen angels that are value stocks and those that are headed straight towards bankruptcy.

Related Links

Bond Basics Tutorial
Junk Bonds: Everything You Need to Know
Stock Basics Tutorial

See also: Bond Rating, Correction, Falling Knife, Investment Grade, Value Stock

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Financial Dictionary

fallen angel

A once-popular security that has lost investor favor and has declined in value. For example, a high-growth company may hit a period of heavy competition or saturated markets such that its stock declines in price and becomes a fallen angel.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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