BidThe price a buyer is willing to offer for shares in a company.
Blue Chip StocksStocks of leading companies with a reputation for stable growth and earnings.
BondCertificate issued by companies and governments to their lenders.
Business angelWealthy person who invests their money in start-ups in return for a percentage ownership. Also called ‘investor angels’ or ‘angel investors’.
CapitalMoney and other property of companies used in transacting the business.
Capital stockAll shares representing ownership of a company.
CommoditiesProducts such as agricultural products and natural resources (wood, oil and metals) that are traded on a separate, authorised commodities exchange.
DividendA portion of a company’s earnings which is paid to the shareholders/stockholders on a quarterly or annual basis.
EquityThe value of stocks and shares; the net value of mortgaged property.
EquitiesStocks and shares which represent a portion of the capital of a company.
FuturesContracts to buy or sell securities at a future date.
InsiderA person who has access to inside information concerning the company.
Insider dealing / tradingBuying or selling with the help of information known only to those connected with the business.
IPOInitial Public Offering – selling part of a company on the stock market.
IssuePut into circulation a number of a company’s shares for sale.
LiabilitiesThe debts and obligations of a company or an individual.
MortgageAgreement 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 fundSavings fund that uses cash from a pool of savers to buy securities such as stock, bonds or real estate.
OptionThe right to buy and sell certain securities at a specified price and period of time.
Par valueNominal face value.
Penny stockShares selling at less than $1 a share.
PortfolioVarious types of securities held by an individual or institution.
SecuritiesTransferable certificates showing ownership of stocks, bonds, shares, options, etc.
ShareThe capital of a company is divided into shares which entitle the owner, or shareholder, to a proportion of the profits.
Share certificateCertificate representing the number of shares owned by an investor.
ShareholderOwner of shares.
SpeculatorSomeone who buys and sells stocks and shares in the hope of making a profit through changes in their value.
StockShares (portion of the capital of a business company) held by an investor.
StockbrokerA licensed professional who buys and sells stocks and shares for clients in exchange for a fee called a ‘commission’.
StockholderPerson who owns stocks and shares.
TraderInvestor 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 sessionPeriod during which the Stock Exchange is open for trading.
Venture capitalMoney raised by companies to finance new ventures in exchange for percentage ownership.
YieldReturn on investment shown as a percentage.