Investment Terms And Definitions Pdf

investment terms and definitions pdf

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If you are a new investor, you are likely to encounter terms that you do not understand.

Also, a different term referring to entry-level career position in many investment banks. Asset: an item with economic value that is owned or controlled by an individual, business or government. Bonds: a government, or company can raise capital by issuing a bond.

Investment and financial terms explained

Click here if you are a professional investor e. Here we aim to provide you with appropriate information and updates, including our range of institutional investment strategies, our investment professionals, and our investment insights. I confirm this is my client type and I agree to and will comply with the Terms and Conditions of this site. Click here if you are a member of the public or an individual investor or self-managed super fund.

Here we aim to provide you with appropriate information and updates, including our firm, our range of retail Funds, unit prices, and distributions. Often a bond, the value and cash flows of which are derived from a pool of specific assets, such as loans, mortgages and credit cards. A measure of the gain or loss on an investment portfolio or security expressed as a percentage of invested capital.

Absolute return differs from relative return because it looks at the return of a particular asset in isolation and does not measure it against a benchmark. Aim to achieve positive returns across all stock market conditions, regardless of whether prices are rising or falling. In managing such a strategy, investment managers employ a range of techniques including the short-selling of securities and the use of derivatives. A government policy of increasing the money supply in an economy in order to lower interest rates so that they reach a level which stimulates borrowing and economic growth.

Companies are accountable to their shareholders. In addition, certain companies e. Interest that has accumulated, and is recognised from an accounting perspective, since the last coupon payment of a bond. Where a fund manager seeks to enhance returns through effective stock selection, asset allocation and currency selection decisions.

The additional return over a benchmark that is delivered by a fund manager's skill, knowledge and expertise. Also see 'alpha'. American Depository Receipts are a way for American investors to hold foreign stocks. They are issued certificates representing shares of non-US companies held on deposit and in trust. They are listed on US stock exchanges, or can be traded over the counter, and priced in US dollars. A person or authorised representative of an organisation licensed by ASIC to provide advice on some or all of these areas: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation.

Public companies are required by law to hold an Annual General Meeting which all shareholders are entitled to attend. AGMs also provide an opportunity for shareholders to question the directors on the company's performance and other issues. An index measuring movements in the price capital of the major shares listed on the Australian Stock Exchange. A type of retirement income arrangement under which an individual invests a lump sum and then draws down an annual pension to a value that takes account of expected cash flow needs and life expectancy.

If the drawdown is greater than investment earnings, then part of the initial lump sum is used to make up the difference. Unlike a traditional pension or annuity, an allocated pension can therefore provide the retiree with continual access to the capital sum invested.

It also allows any balance to be passed on to beneficiaries upon the death of the individual concerned. Investments which do not fall into the traditional categories of bonds, cash and bank deposits, and equities. Examples include commodities, hedge funds and private equity.

An accounting term which permits a company to reduce the value of an intangible asset over its expected life. The annual fee levied on fund holders to cover the costs of managing the fund. It is calculated as a percentage of the value of the fund. A term applying to the conversion of a rate given over a specified period of time to an annual basis, i. An arrangement under which periodic payments are made to a person in return for the investment of a lump sum, usually for the purpose of providing retirement income.

Each periodic payment received by the annuitant is a portion of the original lump sum, plus interest. Generally, an increase in the value of an asset; b in terms of foreign exchange transactions, the rise in the value of a currency in relation to another currency or currencies. Established in with the objectives of improving economic co-operation between members.

The proportion in each asset class will be determined by a fund's benchmark, its objectives and its risk profile. Broad groups of investments with similar characteristics. Examples include bonds, equities, property, cash and alternatives. A professional person engaged by investors, such as superannuation fund trustees, to advise on appropriate investment strategies, asset allocation, and selection of investment managers.

The term 'bubble' refers to an episode where the price of a financial asset rises significantly, often in response to speculation, which results in the asset trading at a substantial premium to its intrinsic value. When the bubble bursts, the price of the financial asset falls sharply leaving investors with reduced wealth. This may impact discretionary spending and hinder economic growth.

Central banks attempt to keep an eye on asset price appreciation and take measures to curb high levels of speculative activity which may make prices vulnerable to a sudden correction. The term 'bubble' was first used in in reference to the South Sea Bubble Crisis and more recently has been applied to Japan in the s and even 'dot-com' companies in the late s.

The value of the assets underpinning a security. These may not be fully reflected in the price of a security. See also net asset value. An option is said to be 'at the money' if its exercise price equals the market price of the underlying asset. The process by which the return on an investment portfolio is attributed to its manager's investment decisions. Typically performance is attributed to decisions regarding stock selection, asset allocation, and active market timing.

An attribution analysis will show whether the managed decisions have added or detracted value in the portfolio. The Australian Prudential Regulation Authority APRA oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July The principal exchange for trading in shares, bonds, and certain other securities in Australia.

The Australian Securities Exchange Limited commenced operations in , replacing the previous state-based exchanges. The ASX was initially established as a mutual organisation owned by individual stockbrokers and stockbroking firms, but in October its members elected to demutualise the Exchange and convert it into a listed company.

The demutualisation took effect in October Web site: www. Contact Us Login Register Logged in as. Your account Log Out. Login Register. Investment Capabilities. Our Capabilities Funds Strategies. Investment Dictionary. Logged in as Your account Log Out. Absolute returns. Absolute return strategy. Accommodative monetary policy. Accountability company. Accrued interest bonds. Accumulation Fund. Accumulation shares. Active investment management funds.

Added value funds. All Ordinaries Index. Allocated pension. The excess return of a fund relative to the return on its benchmark. Alternative investments. American Depository Receipts. Annual General Meeting. Annual Management Charge funds. The price at which a security or asset is offered for sale to a buyer. Asset allocation funds.

Asset consultant. Asset price bubbles. Asset-backed security. At the money option. Attribution analysis. Australian Prudential Regulation Authority. Australian Securities Exchange.

A graduate glossary of investment terminology

Click here if you are a professional investor e. Here we aim to provide you with appropriate information and updates, including our range of institutional investment strategies, our investment professionals, and our investment insights. I confirm this is my client type and I agree to and will comply with the Terms and Conditions of this site. Click here if you are a member of the public or an individual investor or self-managed super fund. Here we aim to provide you with appropriate information and updates, including our firm, our range of retail Funds, unit prices, and distributions.

Reviews Dictionary of Finance and Investment Terms. John Downes and Jordon Elliot Goodman. Woodbury, NY: Barron's, At least two dozen dictionaries covering the topics in this dictionary have been published in the last ten years. These range from topical popularizations such as Hendrickson's Business Talk to more specialized and technical approaches like Dictionary of International Finance by Julian Walmsley. Like its competitors, this dictionary is primarily concerned with defining and pays little attention to the words themselves.

Select the first letter of the word from the list below to jump to the appropriate section of the glossary. If the term you are looking for starts with a number or symbol, choose the " " link. Alternative Minimum Tax AMT - Federal tax, revamped by the Tax Reform Act of , aimed at ensuring that wealthy individuals, trusts, estates and corporations pay at least some tax. Annual report - The yearly audited record of a corporation or a mutual fund's condition and performance that is distributed to shareholders. Annualized - A procedure where figures covering a period of less than one year are extended to cover a month period.

INVESTMENT DICTIONARY

Warren Buffet is one of the richest men and the G. T of the investing world. From his outstanding and phenomenal success, one can deduce the fact that It is never too early to start investing.

Она вглядывалась в глаза Танкадо - и видела в них раскаяние. Он не хотел, чтобы это зашло так далеко, - говорила она.  - Он хотел нас спасти. Но снова и снова он протягивал руку, так, чтобы люди обратили внимание на кольцо.

 - Мой человек ликвидировал его, но не получил ключ. За секунду до смерти Танкадо успел отдать его какому-то туристу. - Это возмутительно! - взорвался Нуматака.  - Каким же образом вы выполните обещание об эксклюзивном… - Не волнуйтесь, - спокойно ответил американец.  - Эксклюзивные права у вас .

Glossary of Investment Terms

 Вот как? - снисходительно произнес Стратмор холодным как лед голосом.  - Значит, тебе известно про Цифровую крепость. А я-то думал, что ты будешь это отрицать.

Сьюзан словно пронзило током. В панике она сразу же представила себе самое худшее. Ей вспомнились мечты коммандера: черный ход в Цифровую крепость и величайший переворот в разведке, который он должен был вызвать. Она подумала о вирусе в главном банке данных, о его распавшемся браке, вспомнила этот странный кивок головы, которым он ее проводил, и, покачнувшись, ухватилась за перила. Коммандер.

Фонтейну нужен был кто-то способный наблюдать за Стратмором, следить, чтобы он не потерял почву под ногами и оставался абсолютно надежным, но это было не так-то. Стратмор - человек гордый и властный, наблюдение за ним следует организовать так, чтобы никоим образом не подорвать его авторитета. Из уважения к Стратмору Фонтейн решил заняться этим лично. Он распорядился установить жучок в личном компьютере Стратмора - чтобы контролировать его электронную почту, его внутриведомственную переписку, а также мозговые штурмы, которые тот время от времени предпринимал. Если Стратмор окажется на грани срыва, директор заметит первые симптомы. Но вместо признаков срыва Фонтейн обнаружил подготовительную работу над беспрецедентной разведывательной операцией, которую только можно было себе представить. Неудивительно, что Стратмор просиживает штаны на работе.


A number of the terms have other non-investment related meanings, which we have not captured. The dictionary is intended to supplement rather than replace.


Investment and financial terms explained

2 COMMENTS

Antoinette S.

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Arbitrage - Arbitrage refers to the practice of buying and selling assets in order to make a quick profit.

Cristel P.

REPLY

ASSET CLASS – An investment category; i.e. equities (stocks), fixed income (​bonds), or investor psychology; these terms are most often used to refer to the stock A tax-deferred defined benefit or defined contribution plan that is established.

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