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.
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.