Forex glossary on the stock exchange
Bond rating
It is used to assess the credit quality of a bond. This is indicated by the letter system: "AAA" means the highest rating, and "CCC" means the lowest.
Capital gains
The profit earned by selling an asset at a price higher than its original purchase price.
Capital growth
When an asset or investment increases in value over time.
Ordinary shares
The most common form of stock whose dividends depend on the success or failure of the company you invest in.
Concentration
An investment strategy that focuses all investments in a single stock or sector.
Shutdown time
All stock exchanges, such as the NYSE or NASDAQ, only allow trading between certain hours each day. The cut-off time refers to the moment when these markets close during the day.
Diversification
Investing in different types of assets, companies or stocks in different sectors or industries.
Dividends
are the distribution of profits that a company pays to its shareholders.
The Dow Jones Industrial Average
An index consisting of 30 major stocks traded on the New York Stock Exchange and NASDAQ; also known as the Dow or DJIA.
Earnings per share (EPS)
This indicator is calculated by dividing the company's profit by the number of outstanding ordinary shares. This is one of the important indicators for determining the value of a stock.
Indicator
A combination of stocks that is used as a benchmark to reflect the overall performance of all investments in the sector.
Inflation
(Usually) a gradual increase in the cost of goods or services, often measured as an annual percentage increase.
Interest
The commission charged by the lender to the borrower for the use of assets is usually expressed in the form of an annual interest rate.
Investing
The practice of investing money in something with the expectation of generating additional income or profit.
An adjustable rate is a loan, the interest rate on which can change during the term of the loan. (the opposite of a fixed rate, also called a variable rate.)
The annual interest rate is the annual cost of the amount being financed, including interest and any fees, expressed as a percentage (also called the annual interest rate).
Annuities are an investment product of the insurance industry. These contracts between an individual and an insurance contract are drawn up in such a way that you deposit a sum of money to the insurance company, and they, in turn, make monthly payments to you.
An application is the process of requesting a loan from a lender by a borrower.
Annual interest rate is the annual cost of a loan, including interest, mortgage insurance, and loan origination fees (points), expressed as a percentage (also called the annual interest rate).
Assets are any item of economic value owned by an individual.
Auto insurance is an insurance policy for insuring the value of your car. In many states, minimal insurance coverage is required to register a car.
A credit rating is a measure of credit risk calculated based on a credit report using a standard formula.
Credit scoring is a statistical method used to determine whether to grant a loan to a borrower.
A credit union is a non-profit financial institution that offers checking/savings accounts and loans to its members.
A lender is a person or organization that provides loans to others. (also called a lender)
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