Agent/Broker

An intermediary who acts on behalf of a client as a buyer or seller in the Market. The Broker/Agent does not own the Security/Stock/Product at any time during the transaction.

Annual Report

A Publication issued by a company at fiscal year end to Shareholders reporting on its operations and its financial statement.

Arbitrage (Arb)

The simultaneous sale and purchase of a stock/security/currency pairing in the market to yield a profit.

Ask (Offer)

The lowest price at which a market participant is prepared to sell.

Assets

Everything a person or a company owns, property, securities, cash, equipment, plant and machinery. Reflected on a company’s balance sheet or an individual’s net worth statement.

Averaging (Up or Down)

Buying (at a higher level) or selling (at a lower level) than originally to improve the unit cost of the overall holding.

Basis Point

Reference to one hundredth of a percentage point. e.g. The difference between 2.75% and 3.00% is 25 basis points.

Bear Market

A market in which the price or value is falling

Bid (Pay)

The highest price at which a market participant is prepared to buy.

Bull Market

A market in which the price or value is rising.

Capital Gain/Loss

The resulting profit or loss of the sale of an asset classified for tax purposes in a particular jurisdiction.

Commission

The fee charged by a broker or investment intermediary for the purchase or sale of a market product on behalf of a client.

Commodities

The raw materials of commerce. Gold, Oil, Agricultural Products, Timber, Coffee, etc.

Cyclical (Stock)

A stock in an industry sector that is sensitive to movements in economic conditions.

Delisting

The removal of a stock for the stock exchange, occurring as a result of bankruptcy for example.

Diversification

The spreading of portfolio risk by investing in different markets or sectors of the economy

Equities

Stocks (common and preferred) which represent the ownership of a company.

Futures

Contracts to buy or sell securities at a future date.

(GTC or Open Order) Good Till Cancelled Order

An order that will remain alive until filled or cancelled whichever happens first.

(GTD) Good Till Date Order

An order that will remain alive until filled or until the date specified has elapsed at which point it is cancelled.

Hedge

Taking a new position that offsets an existing position to limit investment loss.

Index

A measure based on the performance of the component stocks in a particular market, to offer a statistical measure of the state of the stock market.

Inflation

A measure of the increase in prices for goods and services in the economy. Normally based on the percentage change in the Consumer Price Index (CPI).

IPO (Initial Public Offering)

When a private company first issues shares to the general public.

Insider Information

Information pertaining to a particular market or stock that is not open to the general market participants that can affect the price action in that market or stock.

Investment

The ownership or purchase of a stock or security in order to generate a return in income or capital or both.

Liabilities

The debts and obligations of an individual or a company.

Limit Order

An order to buy or sell at a specified price. This order can only be executed at the specified price or better.

Liquidity/Liquid

Referring to how easily a security or market can be bought or sold without a substantial price change.

Long

The term that refers to the ownership or purchase (buying) a security or price volatility of a market or trading product.

Market Order

An order to buy or sell immediately at the best current price available in the market.

Penny Stocks

Low priced stocks whose price is less that 1 or €1.

Rally

A brisk rise in the general price level of a market.

Risk

The future probability or chance of loss.

Spread

The difference between the bid and ask side of a price.

Share/Bond Certificate

The document that denotes the ownership of a stock, bond or securitV.

Thin Market

Where there are relatively few participants in the market. (Market and National Holidays) give rise to thin markets.

Trading Session

The period during which a Market or an Exchange is open for business.

Yield

The measure of the return on an investment.
Bond Yields are a percentage charge on the issuer of the bond. The percentage is a measure of perceived risk the market views the issuing body, the higher the rate the greater the perceived risk.