Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Moody's

What it is:

Moody's Corporation (NYSE:MCO) is a publicly traded financial services company.

How it works (Example):

Moody's Corporation operates two segments: Moody's Investor Service and Moody's Analytics.

Moody's Investor Service provides credit ratings and research on bonds, other debt instruments and other securities. Moody's Analytics creates and sells analytical financial software and provides advisory services and research intended to predict and measure financial risk.

The company is most known for the ratings it gives for debt obligations and structured-finance deals of corporations, states, institutions and governments. Its ratings are similar to ratings also offered by competitor Standard & Poor's (S&P).

Why it Matters:

The idea behind Moody's and other companies like it is to provide not just information to investors, but also insight that can help them make better decisions (as with credit ratings, for example). The value comes not only from the information and insight itself, but also from the notion that Moody's is an independent entity that is not beholden to any particular issuer and thus has no incentive to offer anything other than an objective assessment of a particular investment's risk.

Related Terms View All
  • Non-Accredited Investor
    According to the Securities Act of 1933, a person or entity must meet any of the...
  • London Spot Fix
    To perform a fix, the members essentially determine where supply meets demand for all of...
  • Elephants
    CalPERS (the California Public Employees' Retirement System) is the nation's largest...
  • Oil Field
    Specifically, an oil field contains oil that is trapped by a layer of rock. Oil fields...
  • Underinsured Motorist Coverage
    Let's say you're driving your car and are hit by another driver. The other driver causes...