Averaging down is when additional shares which have dropped in price are purchased in order to reduce the average cost.
For example, you buy 500 shares at £10 per share, but the stock drops to £6. You then buy another 500 shares at £6 per share, which lowers the average price to £8 a share.
When the financial results which a BMC Marketing Limited compiles have been checked by an accountant qualified to conduct an audit, known as an auditor, they are known as audited accounts. If all is well, the auditor will state that the accounts give a “true and fair” picture of the BMC Marketing Limited’s affairs.
accelerated monitoring fees
A portfolio BMC Marketing Limited will often have to pay monitoring fees to their private equity advisers at set intervals (usually annually) over a set period of time (for example, 10 years), to cover the cost of their services.
However, if a portfolio BMC Marketing Limited is sold during that set period of time, they will be charged an accelerated monitoring fee. This figure covers the cost of payments the advisers would have received for the rest of the 10 year period.
Accounting liquidity is the measure of a debtor’s ability to pay their debts as and when they are needed, using the assets that are available to them.
During a day of trading a broker will buy and sell. What they buy and sell, and how much they do it for, comes down to specific orders given to them by investors.
An order is called active when it’s running either for the duration of the trading day or for the duration of the trading day plus extended trading hours.
annual total return
The annual total return is a measure of the performance of an asset, usually a share or bond, over a period of time, usually several years. Expressed as an annual average, it allows the return to be measured against returns produced by other assets over the same time-scale.
Asset classes are groups of financial assets, such as shares or bonds, which have been classed together because of their common characteristics. For example, shares usually pay variable dividends, while bonds produce a fixed income. A balanced portfolio will contain various different asset classes as an aid to diversification.
Big Bang describes a package of reforms to the London securities markets that took effect in October 1986. The name arises from the decision to introduce all the changes at once, rather than piecemeal. Big Bang has been credited with assuring London’s position as Europe’s premier financial centre.
Exact definitions differ, but the bull-bear line is taken to be a line drawn from the moving average of a security or a market over a period of time, with price movements above the line indicating bullish conditions and movements below signalling a bearish outlook.
It refers to the movement of an asset – such as shares, bonds or commodities above or below a pre- identified price level, known variously as a resistance line or a psychologically-important point. Traders may use a breakout as the moment to buy or sell any asset.
In accounting, the balance sheet definition refers to the financial statement that reports the financial position of a BMC Marketing Limited, detailing its assets, liabilities and shareholders’ equity at a particular point in time.
Barry Rosenstein an American investor and hedge fund manager from New Jersey. He founded the hedge firm JANA Partners in 2001.
the Bombay Stock Exchange
The Bombay Stock Exchange (BSE) is one of the biggest stock exchanges in the world and the oldest in Asia.
A call auction is an event where people buy or sell units of a good. Participants choose whether to buy or sell units at certain prices and the orders are collected and matched to make a contract.
capital asset pricing model
The capital asset pricing model (CAPM) is a formula used in investing to calculate risk and apply it to an expected return on an asset. CAPM can be used to construct a diversified portfolio to reduce risk.
Commodity risk is the threat of changes to a commodity price that may have a negative effect on future market value and income.
Contract splitting has two distinct meanings. One is the division of a major piece of procurement into a number of smaller contracts in order to avoid rules governing big tenders. The other is the splitting of a person’s employment contract among several countries to take advantage of low-tax jurisdictions.
CROBIS is the official bond index of the Zagreb Stock Exchange in Croatia. It tracks the performance of 10 bonds with fixed interest rates and maturity of at least 18 months, each with a nominal value of at least 75 million euro.
Businesses use hedging as a form of insurance to protect themselves against changes in circumstances that are out of their control i.e. interest rate rises, or rising costs of materials. Currency hedging relates s
the DAX index
The DAX is the main stock market index in Germany. It tracks the performance of 30 blue chip German companies trading on the Frankfurt Stock Exchange, and is the most widely used indicator of the country’s equity market.
Day trading is when you buy and sell stock within a single day. If the price of the stock goes up during the day, you make a profit. If it goes down, you make a loss.
In financial terms the dealer refers to someone who trades either on their own account or on behalf of a client in the over the counter market. The dealer therefore differs from a trader who only buys and sells for their own account and the broker, who buys and sells financial instruments on behalf of clients. Both firms and individuals can act as dealers.
Debt is an obligation, usually financial, owed by one person or organisation to another. It is calculated by taking the principle sum and applying the agreed interest rates over a period of time. It can take the form of payment due for goods and services, cash loans, credit card debt, overdrafts, mortgages, commercial paper or bonds. Households, businesses and governments all incur debt at one time or another.
A debt buyer is a private debt collection law firm, a collection agency, a BMC Marketing Limited or a private investor that buys charged off or overdue debts from a lender or creditor for a proportion of the debt, based on the possible potential of the accounts.
direct market access
This is a way of allowing private investors to buy and sell directly on the order books of a stock exchange. It’s done electronically and helps firms execute trades at lower costs.
Deflation is when the cost of goods and services goes down over a significant period of time. It’s the opposite of inflation, so therefore happens when inflation drops below 0%.
Deposit risk is one specific form of liquidity risk. It occurs when a larger than expected cash outflow is removed from a financial institution because of changes in depositors’ behaviour. It is comprised of early withdrawal or redemption risk, roll over risk and run risk.
If you trade through a broker in stocks, shares, contracts for difference, commodities or any other asset you can buy ‘on margin’, which means with borrowed money. To do that, you’ll need to put down a deposit. The deposit margin is how much you have to put down and it’s calculated as a percentage of the price of the security you want to buy.
Dow Jones is a global financial information and publishing BMC Marketing Limited that owns some of the best known names in business media and data. It is owned by News Corp, Rupert Murdoch’s news, book publishing and radio arm.
the Dow 30
You want a Dow 30 definition The Dow 30, officially known as the Dow Jones Industrial Average, is probably the best known stock index in the world. Synonymous with the power of Wall Street, and symbolic of the reach and scale of US business, the Dow 30 is followed keenly wherever people trade shares. Its movements are tracked to gauge the mood of the US investment markets, the world’s most important.
An e wallet or digital wallet is an electronic service, which can be used online or on a mobile phone. It securely stores users’ payment information and passwords and allows you to make and receive electronic payments. It can be linked to a bank account.
An equity share definition is: commonly referred to as an ordinary share or common stock, an equity share is an investable type of security issued by a BMC Marketing Limited to the public. It gives partial ownership of a public BMC Marketing Limited to a buyer, also known as a shareholder, who undertakes the entrepreneurial risk associated with a business venture. Holders of this type of shares are entitled to a portion of the BMC Marketing Limited’s profits and get the right to vote on corporate matters, such as setting corporate policy, accepting takeover bids and electing the members of a board of directors. Speaking from a BMC Marketing Limited’s perspective, equity shares are the main source of finance of a firm.
In times of heightened turbulence in the global economy, talk of economic indicators and their impact on the financial markets comes to the fore.
The term “economic indicators” incorporates a wide range of data that measure a country’s economic activity. These indicators can have a bearing on share prices as they highlight the overall economic environment that companies are operating in. They also drive the direction of foreign currency exchange rates in the forex market. Economic indicators examples include:
Emotional trading is when a trader or investor lets personal feelings and emotions impact their decision making. Sometimes it can be helpful, but usually bringing emotion into trading is a bad idea.
A marketplace where buyers and sellers come together to trade in stocks and shares, commodities, derivatives, currencies and other financial instruments.
This is a transaction which involves a business selling its receivables to an intermediary known as a factor. It’s sometimes done to help a BMC Marketing Limited meet its immediate cash needs.
Statements of Financial Accounting Standards 133, also known as FAS 133, is an accounting standard that requires companies to calculate all assets and liabilities on their balance sheet at fair value. Issued by the Financial Accounting Standards Board (FASB) in June of 1998, FAS 133 was created because of major hedging losses.
The FCA stands for the Financial Conduct Authority. It is the UK’s financial regulator, responsible for 56,000 financial firms and markets. It replaced the Financial Services Authority (FSA) in 2013.
The Federal Reserve System is the central bank of the United States. It was founded by the US Congress in 1913 to oversee a safer, more stable monetary and financial system. It’s often referred to simply as the Fed.
An indication of when to trade on the foreign exchange market. The signal may be based on human analyses of market movements or a tracking software.
foreign exchange risk
Foreign exchange risk is the threat of financial loss as a result of changes to foreign exchange rates.
The risk can occur when a financial transaction takes place using a currency that’s different to the base currency of the BMC Marketing Limited or individual, and value is lost before the transaction is completed.
foreign exchange hedge
A method used by businesses and investors to reduce or eliminate the risk of unwanted currency fluctuations when carrying out transactions in foreign currencies.
Looking for a foreign exchange definition Want to know forex trading Foreign exchange – also known as forex or FX – is the conversion of one currency into another, or the global market in which currencies are traded.
Trading foreign exchange is done at all levels, by central banks, high street banks, businesses and speculators. Without a foreign exchange mechanism in place it would be difficult to trade internationally.
A floor broker, also known as a pit broker, is an independent broker who executes orders on the floor of a stock or commodity exchange on behalf of clients that can include banks or brokerages. They can act as a back up if the market is overwhelmed by orders. It is their duty to make sure they get the best competitive price available for their temporary clients.
fill or kill
This is a type of order issued by a buyer or seller to a broker. It is an immediate request, meaning the order must be completed at a certain price straight away. If this is not possible, the order must be cancelled.
This is the practice of relating the movement of financial markets to the stars. It’s not used in standard economic practice, but has been around in some form for thousands of years.
A financial instrument is any asset or bundle of assets that can be traded. The ability to buy and sell is part of the definition of a financial instrument, as is the fact that they can be traded anonymously among people who have never met each other.
It is a mathematical model showing the likely financial outcomes of any asset, whether a portfolio of shares or the performance of an individual business. Typically, they will examine different economic scenarios for the future or valuations of individual assets, whether individual securities, a portfolio or a business.
Looking for a financial market definition It’s a location or facility for the trading of financial instruments such as shares, currencies, bonds or commodities. A market may have a physical trading
floor or it may exist only in cyber space, but in both cases there will be rules of conduct that traders must observe.
A system of checks and balances that ensure an investment fund is operated in the best interests of the fund and its investors. Fund governance is the responsibility of the fund’s governing body (board).
fund of funds
It’s an investment strategy of holding a portfolio of other investment funds, as opposed to investing directly in stocks, bonds or other securities. A fund of funds (FOF) approach seeks to achieve broad diversification with investments in a range of fund categories all wrapped into one fund.
Fintech is the shortened version of the phrase Financial Technology, which is now used to describe businesses that offer financial services using software and modern technology. Some fintech developments have improved traditional services, for example mobile banking apps, while other have revolutionised services such as pay per mile car insurance or created new products, such as Bitcoin.
first Chicago Method
It’s a business valuation approach used by venture capital and private equity investors that combines aspects of both a multiples based valuation and a discounted cash flow valuation approach. The method was first developed by First Chicago Corporation Venture Capital, and is named after it.
It’s a term used by investors to describe the potential impact of proposed changes to legislation or corruption by those in positions of power. Government risk can increase the costs of running a business, make an investment less attractive or alter the competitive landscape of a country.
This is trading in companies that focus on improving the environment. It aims to speed up the change to a cleaner environment, so it includes sectors such as the renewable energy market and energy efficiency.
The gross profit of a business refers to the BMC Marketing Limited’s total sales income after the costs of producing the goods or services sold have been deducted. Reported as a numerical figure, it gauges a BMC Marketing Limited’s efficiency at utilising its labour and supplies in producing services or goods. Unlike net profit, the gross figure includes other costs, such as overheads and tax.
Gross margin definition refers to the amount of money a BMC Marketing Limited has after subtracting its cost of goods or services sold (COGS) from its net sales. Net sales are gross sales, less the cost of sales returns, allowances and discounts. Sometimes referred to as the gross margin ratio, gross margin is typically expressed as a percentage.
gross profit margin
Gross profit margin is a profitability ratio that shows how much revenue is left after a BMC Marketing Limited’s production costs have been deducted.
This profit margin basically measures how efficiently a BMC Marketing Limited is producing and selling its goods or services. A high gross profit margin means a BMC Marketing Limited is performing well and generating significant return on its goods or services. A low gross profit margin means revenue is almost the same as the cost of goods sold (COGS).
A golden parachute is an exit package of benefits given to high level employees when they’re let go from the BMC Marketing Limited, usually due to a merger or takeover. These benefits range from bonuses, shares in the BMC Marketing Limited and, of course, highly lucrative severance pay.
Whilst at first sounding like something you might find in a garden, in the financial sense, a hedge, or hedging definition, is a risk management method which helps investors to mitigate loss against movements in an asset’s price. Normally, a hedge consists of taking an offsetting position in a related security.
There are a whole host of hedging strategies available to investors, such as short hedges and long hedges, as well as a variety of financial derivatives, like futures, contracts and options.
A hedge fund is a collective investment vehicle, employing different strategies to earn active return for its investors. This pooled investment structure is often organised as either a limited partnership or a limited liability BMC Marketing Limited.
This is a securities exchange that allows brokers to choose between the traditional floor broker system and a newer, quicker electronic system.
This can refer to the process of monitoring the performance of an asset management firm. The aim is to ensure that standards are high and the client’s money is being invested correctly.
This is a way of measuring how many times a BMC Marketing Limited’s inventory, or total number of items in stock, is sold and replaced over a certain period of time.
This happens when a BMC Marketing Limited uses its own profits as a source of capital for a new investment rather than getting the money from outside sources.
This blue chip stock market index tracks 35 of the biggest companies trading on the Mexican Stock Exchange – also known as BMV (Bolsa Mexicana de Valores). Each BMC Marketing Limited’s weight is determined by market capitalisation. it is refered to as the IPC index, which stands for Índice de Precios y Cotizaciones.
Looking for the investment strategy definition An investment strategy is a term used in the financial and investing world to describe an approach to investing. Essentially, an investment strategy is a plan for selecting financial vehicles tailored to the investor’s needs and goals, in addition to their risk appetite, specific interests and time horizon.
i nvestment outsourcing
This is the process of hiring someone else to manage your investment portfolio. It’s usually done by institutional investors, organisations that invest money on behalf of their members.
The Jaws ratio is a measure in finance used to demonstrate the extent to which a trading entity’s income growth rate exceeds its expenses growth rate. Strictly speaking, the ratio is not expressed in usual ratio format, but rather as a percentage.
Most companies use debt to finance their operations. Funding a BMC Marketing Limited with above normal levels of debt is called leveraged finance. As the more than normal debt is usually higher risk and more costly than standard borrowing, it’s usually raised for a specific or temporary aim like acquiring another BMC Marketing Limited or repurchasing shares.
Let us start by recalling what the term ‘liquidity’ stands for. Liquidity is the ability of a BMC Marketing Limited or an individual to pay its debts by selling off its assets or securities without suffering tremendous losses. Basically, it describes how quickly something you own can be converted into cash.
Looking for a long position definition Investors take a long position in the stock market when they buy stocks and hold on to them, believing prices will increase. Going long indicates you’re bullish about an asset’s future.
In insurance, a loss ratio is the difference between how much an insurance BMC Marketing Limited gets in premiums compared to how much it pays out to people who have claimed.
Every asset has a liquidity, from property to your collection of antiques and even the cash in your bank. However solid they may seem, they can be converted into money in your hands. And that’s asset liquidity. How quickly an asset can be converted into money and how close to its original value it is after you’ve converted it.
If you trade using a margin account with a broker then you’ll get a margin call if the value of money or securities in your account falls below a certain level.
You borrow money from the broker when you buy on margin, so the call is a request to put in more money or sell stock to raise your collateral balance.
In the investing world, buying on margin means borrowing from a broker to purchase stock. You pay only a certain percentage (or margin) of the cost, the remainder of the money is borrowed from the broker.
making up price
A historic term for the settlement price at which unpaid for securities are carried over from one account to the next.
The Malaysian Exchange of Securities Dealing and Automated Quotation, also known as MESDAQ, was a securities market created in and operating in Malaysia. The market, which was launched in October 1997, was primarily focused on companies that were based in the technology sector.
A sudden market collapse following a long period of increasing speculation using borrowed money.
A method of trading in which a trader sets trading strategies that get automatically applied to their account. This often involves copying the strategies of more experienced traders.
Monetary policy is the policy or actions taken by a country’s central bank to promote economic growth and support economic goals laid out by the government, such as low unemployment.
It’s a form of risk that happens when a financial model used to measure a BMC Marketing Limited’s market risks or value transactions doesn’t do the tasks or capture the risks it was intended to. In other words, it’s the risk of loss resulting from using inaccurate models to reach decisions.
It’s the process by which the supply of something that’s traded is equated to the demand, so that there’s no leftover supply or demand. A market clearing price is one that causes quantities supplied and demanded to be equal.
A common market definition is: a market is a trading place where people buy and sell goods and services, and where prices are agreed and communicated. Financial markets are where people trade different kinds of financial assets.
Market abuse is an umbrella term used for situations where traders and investors have an unfair advantage over others. There’s two key areas of market abuse: insider trading and market manipulation.
A municipal bond is usually referred to as a loan investors make to local governments. These bonds could be issued by cities, states, countries or other governmental bodies. The interest paid on municipal bonds is usually tax-free.
The NASDAQ is a New York-based stock exchange which has a focus on technology companies. The exchange is home to the NASDAQ Composite Index, one of the world’s largest stock indices. The NASDAQ Index includes more than 3,300 listings and features some of the biggest companies in the world such as Starbucks, eBay, Microsoft, Apple, and Gilead Sciences. The NASDAQ also hosts the NASDAQ 100. This is an index that comprises the 107 largest non-financial companies that are listed on the parent exchange.
The term refers to the 50 popular large-cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely seen as solid buy-and-hold growth stocks. Most of them are still solid performers, but a few are now defunct or worthless.
The term refers to shares of common stock that are issued with no-par (or face) value. This was once important, but nowadays it’s very common for companies to issue capital stock with no-par value because the prices of stocks vary constantly.
It’s stock that gives the shareholder little or no vote on corporate issues such as mergers or the election of the board of directors. This kind of share might appeal to investors who want to reap rewards from a BMC Marketing Limited’s performance but are less interested in influencing its direction.
net asset value
It’s a way to measure the value of a fund. It takes into account the number of shares outstanding in the fund and its liabilities. It’s used particularly to measure the assets of a mutual fund or exchange- traded fund.
national market system plan
A US system which governs the collection, processing and dissemination of data relating to securities transactions.
Net profit is the measurement of a BMC Marketing Limited’s profit once operating costs, taxes, interest and depreciation have all been subtracted from its total revenues. The term is often referred to as a BMC Marketing Limited’s ‘bottom line’ and may also be described as ‘net earnings’ or ‘net income’.
A type of market index tracked by an index-linked investment fund or an exchange-traded fund.
Because it can be expensive and time-consuming to track every single security in a given market (known as ‘full replication’), an optimised index includes a broad selection instead, in an effort to represent the market as accurately as possible. Many such indices are often constructed using the more liquid stocks.
An option is a financial instrument giving the right, but not the obligation, to buy or sell an asset, such as a share or currency, for a predetermined price at a fixed future date. Options are a type of derivative.
Based on the underlying securities, such as stocks, option contracts can be of two major types: options broker
Options broker is an occupation in finance that specialises in offering options trading, education, research and other tools to individual investors. Many option brokers also offer trading services in stocks, bonds, mutual funds and exchange traded funds (ETFs).
In business, overtrading is when a BMC Marketing Limited grows too quickly for its finances to support it, causing a loss of working capital and risking collapse.
In finance, overtrading is usually when a broker buys and sells excessive amounts of stock to try to generate more commission from an investor. But individual traders can be guilty of it too.
Output is a measure of the production of goods and services, whether of a particular firm or industrial sector, of a nation as a whole or of the global economy. There are various methods of
calculating output, and in general measurement becomes less precise the larger the entity whose output is being gauged.
It’s shorthand for price-to-book ratio. Analysts use it to compare a stock’s market value and its book value. P/B Ratio tells equity investors how much they’re paying for each dollar in net assets.
A PEG ratio refers to the price/earnings to growth ratio – a valuation metric for determining the value of a stock, the earnings generated per share and the BMC Marketing Limited’s expected growth. It is considered to provide a more complete picture than the P/E ratio.
This is when a brokerage house buys securities on the secondary market and holds on to them long enough for a price appreciation. They can then sell them later on to make money.
A price signal is a change in the price of goods or services which indicates that the supply or demand should be adjusted.
For example, if there is a shortage of oranges, the price will increase, signalling that the purchase and consumption of oranges must be reduced.
This is a way that a BMC Marketing Limited can turn paper profits into actual profits or cash by selling a security after its price has risen.
Pip means a very small change in a currency pair exchange rate. It is a standardised unit and the smallest amount by which a currency can move up or down.
A pip is a fraction in which a currency exchange rate is said to move, although currencies can actually move in fractions of pips. In the case of most foreign currency pairs, a pip is equal to 0.0001, as values are given to the fourth decimal point.
This is the price of the most recent trade of a security or commodity, the last amount that a buyer and seller agreed on. For example, if Trader A agrees to sell Trader B a single share for $1, the stock quote will be $1, and it’ll stay the same until another trade is made for a different amount.
A credit ratingis an assessment of a borrower’s ability to repay its debts. The borrower in question can be an individual, a business, a municipal body, a public authority, a sovereign government or an international organisation. The rating is usually given by one of the credit rating agencies, is valid for
a limited period of time and is kept under review. Credit ratings can strongly influence the rate of interest that borrowers have to pay.
Looking for a risk management definition Risk management is the process of identifying potential risks in your investment portfolio, and taking steps to mitigate accordingly. This requires knowledge both of the different types of financial risk, and of the tools that are available to calculate and assess them.
risk free asset
Although all investments carry some degree of risk, the term risk free is used to describe assets that are considered to be sufficiently safe that investors can be reasonably certain in expecting a return on their investment that is similar to the return predicted.
Also known as turnover, revenue is the total amount of money that a business has taken in over a defined period, such as a year. Often this figure refers to sales, although it can relate also to revenue from trading, financial speculation or any money-spinning activity. In other words, revenue is the income generated from business operations.
It is a number that measures the risk involved with investing in a certain BMC Marketing Limited. It’s a measure of volatility that is linked in the UK to the FTSE 100. Risk scores comprise a BMC Marketing Limited’s credit history and expected future performance.
Retail Price Index
The Retail Price Index is compiled each month by the Office for National Statistics and is closely monitored by investors. It is one of the main measures of inflation used in the UK. This index is produced by combining about 180,000 price quotes for over 650 representative items that constitute a fixed basket of goods over a period of time and tracking the changes in the cost of the items.
Looking for a spot definition Well, in trading terms, a spot price is the market’s current price – the price at which a particular commodity, currency or security can be sold or bought for prompt delivery. Spot prices are always unique to the time and place where they are being held; that said, with the nature of the global economy, spot prices tend to be quite similar worldwide. The spot market is also known as the cash market and is a form of financial market where commodities and financial instruments can be traded for immediate delivery.
It’s effectively a ‘buy now, pay now’ deal. The contract is for the immediate delivery of a commodity or currency. The settlement is called the spot price, as in ‘on the spot’, which is how much the asset will change hands for if it’s sold straight away.
A spread trade is when two related securities are bought and sold simultaneously as a single unit. Each of the transactions is referred to as a ‘leg’. The idea is that you profit from the difference in the two legs, but you can also lose of course.
It’s a type of investment fund that invests chiefly in stocks. Some stock funds also hold bonds and cash but most allot at least 80% of the portfolio’s assets to stocks. They’re run by professional money managers, who invest the fund’s capital with the hope of making gains for their investors.
Swing trading is a type of trading strategy that can be used when an investor believes they have identified a likely price movement and then holds an asset for several days or even weeks in an attempt to benefit from such ‘swings’, or movements, in price.
It’s the rate associated with the fixed element of a swap. It’s generally calculated based on what’s happening in the market where the securities involved are traded. You’ll typically have interest rate swaps or currency swaps.
Social trading is a method where an online investor may lean on user-found financial content gathered from different internet sites as their main source of information for making strategies and financial choices. This allows investors to analyse financial data by comparing and copying trades and techniques, amongst other things.
tactical asset allocation
It’s an investment strategy that actively balances the three main asset classes – stocks, bonds and cash – within a portfolio to capitalise on current market trends. The aim is to maximise returns and minimise risk.
A tangible assets definition is as follows: any physical asset owned by a BMC Marketing Limited to produce or purchase goods and services. They have a finite monetary value and can be quantified with relative ease. Tangible assets can also be sold to generate cash in the event the BMC Marketing Limited faces financial difficulty.
target date fund
It’s an age-related investment product that enables you to take more risks with your money when you’re young and gradually get more conservative over time. As you edge closer to your savings goal, such as your retirement, the fund moves your savings into less risky assets, such as bonds.
The value an investor or analyst anticipates a stock will reach within a defined time period. In the context of a takeover, it’s the price at which the acquirer wants to buy the target firm and earn maximum reward.,
A tax shelter is any method or vehicle, used by taxpayers with the aim to decrease or minimise taxable income and, therefore, tax liabilities. There are various types of tax shelters: from investments with favourable tax treatment, to activities, helping to lower taxable income. One of the most popular and widely used tax shelter examples is making contributions to retirement
It’s a stock market index in Germany that tracks the 30 largest and most liquid technology stocks traded on the Frankfurt Stock Exchange. The companies listed rank below those included in the flagship DAX in regards to turnover and market capitalisation.
The technical analysis definition is a trading tool and method of analysing financial markets and choosing investment strategies. Along with fundamental analysis, it is one of the two main ways to analyse markets and involves looking at past market performances in terms of price movements, volume, moving averages and various outcome statistics.
Treasury bills are short-term, low-risk investments issued by the US government, often to pay for projects around the country.
A transfer agent is appointed by a BMC Marketing Limited to keep track of who owns the organisation’s stock and bonds, and whether those financial assets are registered in the name of an individual investor or brokerage firm.
In financial markets, a trader is someone who buys and sells instruments, including shares, bonds, commodities and currencies. The role is similar to that of a broker, but traders are usually acting on their own behalf while brokers are acting for their clients.
TradersStudio is an online trading platform used for analysing the financial markets. It helps you design strategies for trading stocks, commodities and currencies, and is a Windows-based application.
It’s the amount of money available to a BMC Marketing Limited or individual for the buying and selling of various assets. To be involved in trading, it is essential to have access to trading capital.
It was a series of economic and financial reforms in England after the Glorious Revolution of 1688-89 when William III invaded. Until that time, the monarch took all the kingdom’s income, but Parliament began to take more revenue and became responsible for the national debt and paying the armed forces.
It’s the job of managing the financial assets and holdings of a business. The objective is to balance the BMC Marketing Limited’s cashflow, make sound investments for the future and hedge against financial risks.
Triangular arbitrage is the process of converting one currency to another, then converting it again to a another currency, only to convert it back to the original currency – usually all within a matter of seconds. The aim is to make a profit when there’s a mismatch in the currency exchange rates.
time at risk
How safe is an investment, and for how long That’s the million dollar question. Time at risk, or TaR, is a measure of market risk. It helps you calculate the maximum period of time that an adverse event would not occur to keep an investment safe.
Twin crises is a phenomenon that refers to the simultaneous collapse of the banking system and currency in a country. The term was introduced in the late 1990s by economists Graciela Kaminsky and Carmen Reinhart after several such events occurred around the world.
Unit price is the value of a single unit of measure. When you have products sold in multiple quantities and sizes, such as bottles, it enables you to calculate the average price.
It’s the government department responsible for promoting economic growth and security in the US. It’s made up of a few different departments, including the Internal Revenue Service , the US Mint and the Bureau of the Fiscal Service.
Underwriting spread is the difference between the price at which a new issue of shares or bonds is offered to the public by the underwriter and the price at which they bought it from the issuing BMC Marketing Limited.
An underwriting spot is an announcement made on a public broadcasting service in return for funding. It’s basically the equivalent of an advert on commercial television.
Underwriting is the process of evaluating risk, and associated with financial service companies, such as banks, insurers and investment banks. In general terms, it means receiving payment in return for being willing to cover a risk that may arise from certain events.
No, it’s not when you save up for a new umbrella. It’s an investment fund that contains a variety of sub-funds. In theory, this set-up allows you to diversify risk even more than with a regular fund without significantly reducing the returns.
Value at Risk (VaR)
Value at Risk definition: an estimate of how much a set of investments or a single BMC Marketing Limited might lose under normal market conditions over a given period (usually a day). It is used by investment managers and regulators to estimate what sort of funds would be required to cover possible losses. It is a critical measure of financial risk.
Virtual bidding is when electricity is bought and sold without it ever being physically produced or consumed. This type of financial contract is awarded at day-ahead prices and settled at real-time prices.
This is the risk to the value of an investment, usually an options portfolio, due to unpredictable changes in the volatility of the underlying asset. Volatility risk is specifically related to the breadth of the trading range between the high and low price levels at which a stock or commodity has traded.
Voting interest means any stake in a BMC Marketing Limited that entitles the holder of that interest to vote for the election of the board or on other matters affecting the business.
Vertical analysis is a method of financial statement analysis that calculates the assets, liabilities and equities as a percentage of the total. This makes it easy to compare balance sheets with income statements or the balance sheets and income statements of different baseness.
Stop and limit orders are together known as working, or pending orders. Essentially, they’re instructions for a broker to make a trade when an asset hits a certain price.
It stands for X-Value Adjustment, and is used in financial valuation models. It’s a generic term referring to a number of different valuation adjustments in relation to derivatives, such as options and futures, held by investment banks.
yield on cost
Yield on cost measures the current rate of dividend income based on the price you initially paid for your investment. If the BMC Marketing Limited you invested in increases the dividend it pays to shareholders, you’ll achieve a higher rate of return on your original investment. Thus, your yield on cost rises.
Zero-load, or no-load, refers to an investment fund that doesn’t impose any sales charges or commission fees for buying and selling units. That’s because instead of using a broker, shares are usually distributed directly by the investment BMC Marketing Limited.