Investment Terms

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Investment Terms

Return

The gain or loss of a particular investment, it consists of the income and the capital gains relative on an investment. The return is usually quoted as a percentage.

Risk

The level of volatility, or fluctuation in investment returns you’re prepared to accept. Risk involves the chance an investment’s actual return will differ from the expected return.

Dividend

A sum of money paid regularly by a company to its shareholders out of its profits or reserves. Usually paid annually

Capital Gain

A profit made from the sale of property or an investment

Assets

Property owned by a person or company and is held in high regard of its value and is available to meet debts, commitments, or legacies.

Prospectus

It is a from of legal document that provides information about an investment offering for sale to the public

Liquidity

The availability of liquid assets to a market or company

Portfolio

A portfolio is a grouping of assets (e.g. stocks, bonds, cash equivalents)

Company annual reports

A yearly overview which discloses the company’s annual financial performance

Tax minimisation

Legitimately arrange for tax affairs to reduce the amount of tax you pay. Entitled to minimise tax liabilities through investment and to receive benefits provided under the law.

Blue Chip shares

A stock of a large, well-established and financially sound company that has operated for many years. More often than not a household name, a blue-chip stock typically has a market capitalisation in the billions

Australian Stock Exchange (ASX)

ASX provides information including stock quotes, market data, share prices, tools and resources and investment information. ASX operates Australias primary security exchange.

Equity/equities

Value of shares issued by a company

Stockbroker/underwriter

1. A broker who buys and sells securities on a stock exchange on behalf of clients.

2. A financial institution that buys unsold shares in an issue of new shares

Ethical Investments

An investment process that incorporates environmental and social factors. Also known as Sustainable investment and socially responsible investment.