The stock market investment dictionnary

Stock: a type of title that represents ownership of a business.

Stock market: a market where securities, such as shares and bonds, are bought and sold.

Quotation: the process of listing a company and listing of its shares in the stock exchange

Market capitalisation: the total value of the outstanding shares of a company, calculated by multiplying the current share price by the number of shares in circulation.

Dividend: Payment by a company to its shareholders, usually deducted from its profits.

Equity Benefit (EPS): That part of the profit of an enterprise that is allocated to each ordinary share in circulation.

Price-to-earnings ratio (P/E ratio): an assessment ratio that compares the current share price of a company's shares to its earnings per share.

Yield: income generated by an investment, usually expressed as a percentage of the value of the investment.

Volume: The number of shares in a share that are traded on a given day.

Buyer-seller deviation: The difference between the highest price a buyer is willing to pay for security and the lowest price a seller is willing to accept.

Broker: A person or company that facilitates the purchase and sale of securities on behalf of investors.

Market order: Order of purchase or sale of a security at current market price.

Minimum-course order: Order to buy or sell a security at a specified price or better.

Stop order: Order to buy or sell a security once it reaches a certain price.

Volatility: The extent to which the price of a security fluctuates over time.

Index: a benchmark that measures the performance of a group of securities, such as equities or bonds.

Exchange-traded funds (ETFs): a type of investment fund that is traded on the stock exchange as a share.

Obligation: A debt instrument that represents a loan made by an investor to a borrower, usually a government or a corporation.

Treasury note: Obligation issued by the US government.

Business obligation: Obligation issued by a company.

Undesirable obligation: A bond issued by a company with a lower credit rating, usually with a higher return to offset the increased risk.

Return curve: A graph that tracks yields bonds with different maturities, usually used to assess the overall health of the economy.

Market index: A measure of the performance of a particular market or sector, usually based on a weighted average of a group of shares. Beta - A measure of the volatility of a security vis-à-vis the market

Alpha: A measure of the excess yield of a security relative to its benchmark

Sharpe ratio: A measure of risk-adjusted yield

Asset allocation: The process of diversification of investments in different asset classes

Fundamental analysis: The process of analysing the financial and economic fundamentals of a company

Technical analysis: The process of analysis of securities based on historical price and volume data

Market capitalization: The total value of the outstanding shares of a business.

Dividend: Part of the profits of a company paid to shareholders.

Redemption of shares - Acquisition of its own shares by a company.

Common investment fund: A type of investment fund that groups the money of several investors to invest in securities.

Hedge Fund: A type of investment fund that uses a variety of strategies to generate returns.

Derivative: A financial instrument whose value is based on an underlying asset.

Options: A type of derivative that gives the holder the right to buy or sell an underlying asset at a predetermined price.

Futures contracts: A type of derivative that requires the buyer to purchase an underlying asset at a predetermined price and time.

Short selling: The process of selling borrowed securities in the hope of buying them back at a lower price.

Bull market: A market characterised by higher prices.

The bear market: A market with falling prices.

Blue Chip: A large, well-established company with a long history of profitability and stability.

Growth action: A company's share is expected to grow at a faster pace than the market.

Value action: A share of a company that is undervalued by the market.

FPI: Real estate investment fund.

401(k): A retirement savings scheme offered by employers.

An income: A financial product that provides regular payments over a specified period of time.

Capital gains: The profit from the sale of an investment.

Yield: Income generated by an investment.

Margin: The amount of money borrowed to buy securities.

Marginal call: A request for additional funds to cover losses in a margin account.

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