Bid – The price a buyer is willing to offer for shares in a company.
Blue Chip Stocks – Stocks of leading companies with a reputation for stable growth and earnings.
Bond – Certificate issued by companies and governments to their lenders.
Capital – Money and other property of companies used in transacting the business.
Capital stock – All shares representing ownership of a company.
Commodities – Products such as agricultural products and natural resources (wood, oil and metals) that are traded on a separate, authorised commodities exchange.
Dividend – A portion of a company’s earnings that is paid to the shareholders/stockholders on a quarterly or annual basis.
Equity – The value of stocks and shares; the net value of mortgaged property.
Equities – Stocks and shares that represent a portion of the capital of a company.
Futures – Contracts to buy or sell securities at a future date.
Insider – All those who have access to inside information concerning the company.
Insider dealing/trading – Buying or selling with the help of information known only to those connected with the business.
IPO – Initial Public Offering – selling part of a company on the stock market.
Issue – Put into circulation a number of a company’s shares for sale.
Liabilities – The debts and obligations of a company or an individual.
Mortgage – Agreement by which a bank or building society lends money for the purchase of property, such as a house or apartment. The property is the security for the loan.
Mutual fund – Savings fund that uses cash from a pool of savers to buy securities such as stock, bonds or real estate.
Option – The right to buy and sell certain securities at a specified price and period of time.
Par value – Nominal face value.
Penny stock – Shares selling at less than $1 a share.
Portfolio – Various types of securities held by an individual or institution.
Securities – Transferable certificates showing ownership of stocks, bonds, shares, options, etc.
Share – The capital of a company is divided into shares which entitle the owner, or shareholder, to a proportion of the profits.
Share certificate – Certificate representing the number of shares owned by an investor.
Shareholder – Owner of shares.
Speculator – Someone who buys and sells stocks and shares in the hope of making a profit through changes in their value.
Stock – Shares (portion of the capital of a business company) held by an investor.
Stockbroker – A licensed professional who buys and sells stocks and shares for clients in exchange for a fee called a “commission.”
Stockholder – Person who owns stocks and shares.
Trader – Investor who holds stocks and securities for a short time (minutes, hours or days) with the objective of making profit from short–term gains in the market. Investment is generally based on stock price rather than on an evaluation of the company.
Trading session – Period during which the Stock Exchange is open for trading.
Venture capital – Money raised by companies to finance new ventures in exchange for percentage ownership.
Yield – Return on investment shown as a percentage.
