24 financial words
explained by a person who doesn't like complicated investment lingo –calendar
Christmas eve is hardly the right time to think about investing! Merry Christmas from all of us at Selma finance!
When an ETF which is based in one country pays out dividends to an investor based in a different country, the company running the ETF may be required to take out a part of the money to pay withholding tax.
Volatility is sort of a "how scary it is"-scale for a rollercoaster. Small volatility – low rises and dips. Bigger volatility – stronger ups and downs.
An ETF is a bundle of different things that you can invest in. Those things inside an ETF (things that the fund owns) are called underlying assets.
Any event when money moves into or out of your bank account.
A tax you need to pay when buying and selling investments.
Buying and selling stocks to make sure that the portfolio stays according to plan.
A three-month period (often referred to as Q1, Q2, Q3 and Q4) of a company’s financial calendar...
A guy that wants to invite you to dinner and talk about your money if you have enough of it.
When things seem too expensive, they’re overvalued. When they seem (surprisingly) cheap, they are undervalued.
Running a business costs money. You need to buy services, get stuff and pay salaries and taxes. Net income is the “bottom line” number that tells how much money a business made after all these costs are dealt with.
With a mutual fund a lot of people can invest in a lot of things (like real estate and stocks) through one “company”. There’s an investment manager who gets paid for doing all the trading.
A company is “listed”, when it is added to a public stock exchange – kind of like a continuous auction. When that happens, the public can buy and sell parts of the company.
When private bankers get money for selling a specific investment, the reward is called a “kickback”. Because of this “bonus”, they might not offer you better alternatives. That’s not good.
Sharing a (bank) account with more than one person. There might be all kinds of legal fine print about the practical details.
You can do all kinds of things with money. Spend it, give it away, keep it, gamble it or invest it. When you invest, you put money into something and expect to have more of it back in return...
High-frequency trading is done by powerful computers and complicated algorithms that analyze and move millions of trading orders very fast – up to milliseconds.
Putting money in the things around the world. Similar to the precaution of not putting “all the eggs in one basket”.
A price paid for a service, such as a haircut or a delivery. Investment fees are often hidden and hard to understand. You might end up with a nasty surprise of paying for things like trading or closing your account.
An exchange traded fund is like a package or a bundle. With and ETF you can invest in a bunch of stocks, bonds or other with one simple investment.
A company might make some extra money (profit) during the business year. When that happens, it might give some of it in cash or more stocks (or jellybeans) to those who have their stocks.
A proof that you’ve loaned money to a company or a country so they can buy things. They’ll pay you back (with extra) if they are nice.
Something that has been gathered gradually - bit by bit - over time.
Newly born tradition. Starts on 01.12.2017!