11862855
Description
Flashcards by Sonam Bhuka, updated more than 1 year ago
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Created by Sonam Bhuka
almost 8 years ago
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| Question | Answer |
| securities | is a general term and refers to stocks, bonds, and money market instruments |
| stocks | = equities of companies which are listed on a public stock exchange |
| shares | includes both stocks and privately held stakes in small firms |
| mutual fund | = Anlagefonds: is a basket of stocks, put together by a fund manager |
| index | a selected group of companies (in stocks) brought together, for example, the Dow / DAX |
| the bond market | entirely electronic market; a market where a government or large company wants to borrow a large sum of money |
| the principal | the original amount an issuer has to pay back to the bondholder over a fixed period of time (= maturity) |
| the coupon | the fixed interest rate which the bondholder receives |
| an investment grade | a corporate bond with low risk |
| a junk bond | a corporate high-risk bond; = high-yield bond |
| the money market | a market for short-term loans (under a year) that pay interest; used by investors with spare cash |
| the foreign exchange | the market where dealers buy and sell currency pairs such as EUR/USD; players are commercial or central banks, for example |
| a) to invest b) to trade | a) buy and hold for the long term b) buy and sell over the short term |
| to hedge | = absichern: part of the risk management; it means having a second position in the market, so that if the market moves against your first position your losses are minimized |
| an endowment | = Stiftung: used to generate an income for non-commercial purposes, for example, Bill and Melinda Gates Foundation |
| price elasticity | how sensitive a company's sales are to changes in the price of its products |
| market capitalization | share price multiplied by total number of issued shares |
| earnings growth | earnings per share, compounded over several years |
| the dividend yield | the annual dividends per share divided by the share price |
| a breadth | = Breite, Umfang: the number of individual stocks participating in the movement of an index |
| a trading channel | two parallel lines drawn on a chart that contain all price movements over a time period |
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