GQ INC’S PATENTED JAR­GON TRANS­LA­TOR

EN­TER­ING THE MAR­KET FOR THE FIRST TIME IS LIKE LEARN­ING MAN­DARIN DUR­ING A PAM­PLONA BULL RUN. TIME TO BREAK DOWN THE BA­SICS.

GQ (Australia) - - GQ INC. -

AS­SET MAN­AGER This is the per­son who man­ages your in­vest­ments – and who will most likely charge a pretty penny for the plea­sure.

ASX Aus­tralian Se­cu­ri­ties Ex­change, the sun­burnt coun­try’s lead­ing share mar­ket in­dex.

BEAR MAR­KET Share prices fall, peo­ple get pes­simistic and sell, prices fall fur­ther.

BLUE CHIP STOCK Means stock in a large com­pany that has a mar­ket cap in the bil­lions. Means they’re usu­ally a strong bet.

BONDS Ef­fec­tively lend­ing money, say to a gov­ern­ment, at a low rate. A fancy ‘IOU’ and less risky than shares. Bonds won’t (likely) make you rich, but your money should be se­cure.

BRO­KER Un­like a reg­u­lar mar­ket, these are the only peo­ple au­tho­rised by the ASX to par­tic­i­pate as buy­ers and sell­ers. They deal on your be­half and take a fee for their ser­vices.

BULL MAR­KET Share prices rise, peo­ple get op­ti­mistic and buy, prices rise more.

CFDS Con­tracts for dif­fer­ence. High-risk, short-term, and based on an as­set that fluc­tu­ates in price. Ba­si­cally, a bet on whether you think a stock will rise or fall. Get rich quick, or go broke try­ing.

COM­MODI­TIES A ma­te­rial that can be traded. Think oil, gold and gas.

DIV­I­DENDS You own shares in a com­pany that makes sweet bank? Jack­pot – you get paid. Yearly.

ETF Ex­change Traded Fund. Share in­vest­ing for peo­ple who know noth­ing about shares. Your money is spread across un­der­ly­ing as­sets, and then the fund tracks an in­dex. High liq­uid­ity and low fees? Yes please.

FOREX The for­eign ex­change mar­ket to trade in global cur­ren­cies.

HEDGE FUND Pools of bor­rowed money from cashed-up play­ers that’s in­vested in a va­ri­ety of as­sets.

IN­DEX (STOCK IN­DEX) Lumps a group of stocks to­gether, mea­sures their value and tracks it over time.

MAR­KET CAP­I­TAL­I­SA­TION The value of a com­pany’s shares. A large-cap com­pany is worth more than $10bn.

SHARES, STOCK A tiny slice of a com­pany’s over­all pie. Buy stock, and you be­come a part owner.

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