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{"id":577,"date":"2020-07-16T16:45:37","date_gmt":"2020-07-16T16:45:37","guid":{"rendered":"https:\/\/rodcapmarkets.com\/?page_id=577"},"modified":"2021-09-01T09:03:01","modified_gmt":"2021-09-01T09:03:01","slug":"glossary","status":"publish","type":"page","link":"https:\/\/rodcapmarkets.com\/specificities\/glossary\/","title":{"rendered":"Glossary"},"content":{"rendered":"

Capital markets glossary<\/h1>\n
\n

A<\/a>\u00a0\u00a6\u00a0B<\/a>\u00a0\u00a6\u00a0C <\/a> \u00a6 D<\/a> \u00a6 E <\/a> \u00a6 F<\/a> \u00a6 G<\/a> \u00a6 H<\/a> \u00a6 I<\/a> \u00a6 M<\/a> \u00a6 N<\/a> \u00a6 O<\/a> \u00a6 R<\/a> \u00a6 S<\/a> \u00a6 V<\/a> \u00a6<\/p>\n<\/div>\n

\"\"<\/p>\n

\n
A<\/div>\n<\/div>\n
\n

Arbitrage<\/h3>\n
\n

The process where a gap between two market makers prices is exploited by buying from one while simultaneously selling to the other to lock in a profit.<\/span><\/p>\n<\/div>\n<\/div>\n

\n
B<\/div>\n<\/div>\n
    \n
  • \n

    Balance of Payments<\/h3>\n
    \n

    Accounting record of all monetary transactions between a country and the rest of the world.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Balance of Trade<\/h3>\n
    \n

    Largest component of the balance of payments<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Base rate<\/h3>\n
    \n

    Interest rate set by the central bank to lend other banks.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Bear market<\/h3>\n
    \n

    A market distinguished by declining prices.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Bid price<\/h3>\n
    \n

    The price at which a stock, index or commodity can be sold.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Bid-ask price<\/h3>\n
    \n

    The difference between what buyers are willing to pay and what sellers are asking for in terms of price.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Blue chip stock<\/h3>\n
    \n

    Stock of a financially sound company that has demonstrated its ability to pay dividends in both good and bad times.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Bond<\/h3>\n
    \n

    A certificate of debt issued by a government or corporation that guarantees payment of the original investment plus interest by a specified future date.<\/span><\/p>\n<\/div>\n<\/li>\n

  • \n

    Bull market<\/h3>\n
    \n

    A market distinguished by rising prices.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

    \n
    C<\/div>\n<\/div>\n
      \n
    • \n

      Capital gains tax<\/h3>\n
      \n

      A tax on investment profits.<\/span><\/p>\n<\/div>\n<\/li>\n

    • \n

      Cash price<\/h3>\n
      \n

      The price of an asset for immediate delivery.<\/span><\/p>\n<\/div>\n<\/li>\n

    • \n

      Corporate action<\/h3>\n
      \n

      Any event initiated by a corporation which impacts its shareholders.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

      \n
      D<\/div>\n<\/div>\n
        \n
      • \n

        Derivatives<\/h3>\n
        \n

        Financial contracts, such as futures and options, whose value is derived from an underlying asset, rate or index.<\/span><\/p>\n<\/div>\n<\/li>\n

      • \n

        Dividend<\/h3>\n
        \n

        That part of a company’s after-tax earnings that is distributed to shareholders.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

        \n
        E<\/div>\n<\/div>\n
          \n
        • \n

          Ex-dividend<\/h3>\n
          \n

          A share bought without the right to receive the next dividend which is retained by the seller.<\/span><\/p>\n<\/div>\n<\/li>\n

        • \n

          Existing Home Sales<\/h3>\n
          \n

          Number and value of old homes sold, measure of consumer confidence and spending power<\/span><\/p>\n<\/div>\n<\/li>\n

        • \n

          Expiration \/ expiry date<\/h3>\n
          \n

          The date that a spread bet expires.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

          \n
          F<\/div>\n<\/div>\n
            \n
          • \n

            Fair value<\/h3>\n
            \n

            This is the theoretical price at which a futures contract should trade when compared to the cash or spot price.<\/span><\/p>\n<\/div>\n<\/li>\n

          • \n

            Futures<\/h3>\n
            \n

            A financial contract obligating the buyer\/seller to purchase\/sell an asset such as a physical commodity or a financial instrument, at a predetermined future date and price.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

            \n
            G<\/div>\n<\/div>\n
              \n
            • \n

              GDP (Gross Domestic Product)<\/h3>\n
              \n

              Measure of market activity, value of goods and services produced by an economy.<\/span><\/p>\n<\/div>\n<\/li>\n

            • \n

              Gearing<\/h3>\n
              \n

              The relationship between potential profit or loss and the initial outlay.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

              \n
              H<\/div>\n<\/div>\n
                \n
              • \n

                Hedging<\/h3>\n
                \n

                A strategy to reduce the risk of an open position.<\/span><\/p>\n<\/div>\n<\/li>\n

              • \n

                Housing Starts and Building Permits<\/h3>\n
                \n

                Number of new family homes and buildings that were constructed, strength of the economy.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

                \n
                I<\/div>\n<\/div>\n
                  \n
                • \n

                  Illiquid Market<\/h3>\n
                  \n

                  A market in which it is difficult to sell or buy due to lack of interested buyers\/sellers.<\/span><\/p>\n<\/div>\n<\/li>\n

                • \n

                  Interim dividends<\/h3>\n
                  \n

                  A company’s distribution of profits to shareholders halfway through the financial year.<\/span><\/p>\n<\/div>\n<\/li>\n

                • \n

                  IPO Initial Public Offering<\/h3>\n
                  \n

                  The offering of shares making their market debut.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n

                  \n
                  M<\/div>\n<\/div>\n
                  \n

                  Mid-Price<\/h3>\n
                  \n

                  The price derived by the average of bid and ask rate.<\/span><\/p>\n<\/div>\n<\/div>\n

                  \n
                  N<\/div>\n<\/div>\n
                  \n

                  New Home<\/h3>\n
                  \n

                  Sales National data for new home sales, prices, and number of sales.<\/span><\/p>\n<\/div>\n<\/div>\n

                  \n
                  O<\/div>\n<\/div>\n
                  \n

                  Open position<\/h3>\n
                  \n

                  Trades that are currently running within a portfolio.<\/span><\/p>\n<\/div>\n<\/div>\n

                  \n
                  R<\/div>\n<\/div>\n
                  \n

                  Rights issue<\/h3>\n
                  A privilege allowing existing shareholders to buy shares shortly before they are offered to the public at a specified and usually discounted price and usually in proportion to the number of shares already owned.<\/div>\n<\/div>\n
                  \n
                  S<\/div>\n<\/div>\n
                    \n
                  • \n

                    Scrip dividend<\/h3>\n
                    A scrip dividend is a scrip or bonus issue of shares made at no charge to shareholders in proportion to their holdings in lieu of a cash dividend.\n<\/div>\n<\/li>\n
                  • \n

                    Settlement price<\/h3>\n
                    The last traded price for a financial contract on any trading day.<\/div>\n<\/li>\n
                  • \n

                    Shares<\/h3>\n
                    Represent ownership of part of a company. They are also known as equities.\n<\/div>\n<\/li>\n
                  • \n

                    Shorting<\/h3>\n
                    Refers to selling an asset that you do not own with the aim of buying it back cheaper at a later date.<\/div>\n<\/li>\n
                  • \n

                    Spread<\/h3>\n
                    The difference between our Buy and Sell price.\n<\/div>\n<\/li>\n<\/ul>\n
                    \n
                    V<\/div>\n<\/div>\n
                    \n

                    Volatility<\/h3>\n
                    A statistical measure of a market’s price movements over time.<\/div>\n<\/div>\n


                    \n<\/p>\n","protected":false},"excerpt":{"rendered":"

                    Capital markets glossary A\u00a0\u00a6\u00a0B\u00a0\u00a6\u00a0C \u00a6 D \u00a6 E \u00a6 F \u00a6 G \u00a6 H \u00a6 I \u00a6 M \u00a6 N \u00a6 O \u00a6 R \u00a6 S \u00a6 V \u00a6 A Arbitrage The process where a gap between two market makers prices is exploited by buying from one while simultaneously selling to the other to lock […]<\/p>\n","protected":false},"author":11,"featured_media":0,"parent":379,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/pages\/577"}],"collection":[{"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/comments?post=577"}],"version-history":[{"count":93,"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/pages\/577\/revisions"}],"predecessor-version":[{"id":2301,"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/pages\/577\/revisions\/2301"}],"up":[{"embeddable":true,"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/pages\/379"}],"wp:attachment":[{"href":"https:\/\/rodcapmarkets.com\/wp-json\/wp\/v2\/media?parent=577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}