Stocks & Trading
Shares, orders, exchanges and how trading works.
- Annual General MeetingAGMThe yearly meeting where shareholders receive accounts, vote on directors and other ordinary company business.
- Annual ReportA yearly document companies publish with financial results, business updates, and audited accounts.
- AppreciationA rise in the market value of an asset over time, opposite of a price decline.
- ArbitrageBuying and selling the same asset in different markets at once to lock in a price gap as profit.
- Ask PriceThe lowest price a seller is currently willing to accept for a share or other asset.
- AssetAnything of value that a person or company owns and can use to generate income or sell later.
- Asset AllocationHow you split your money across types of investments such as shares, bonds, and cash.
- Bear MarketA market in which prices fall sustainably, commonly a drop of 20% or more from a recent peak.
- BetaA measure of how much a share's price tends to move relative to the wider market.
- Bid PriceThe highest price a buyer is currently willing to pay for a share or other asset.
- Blue ChipA large, well-known company thought to be financially strong and relatively stable over time.
- Board of DirectorsThe group elected by shareholders to oversee management, set strategy direction and protect the company's long term interests.
- BondቦንድA loan to a government or company that pays interest and repays the principal on a set date.
- Bonus ShareAn extra share issued free to existing shareholders, paid from reserves rather than from a fresh cash subscription.
- Book ValueThe net worth of a company on its accounts: total assets minus total liabilities.
- Bull MarketA market in which prices rise over a sustained period and investor confidence is high.
- Capital GainProfit earned when you sell an asset for more than you paid for it.
- Cash FlowThe money moving into and out of a business over a period, separate from accounting profit.
- CommissionA fee paid to a broker or agent for executing a trade or arranging a deal.
- CommodityA basic raw material or farm product traded in bulk, such as coffee, gold, or oil.
- CouponThe regular interest payment a bond issuer pays to holders, often stated as a yearly rate.
- DerivativeA financial contract whose value depends on an underlying asset, rate, or index.
- DiversificationSpreading investments across different assets so that a loss in one does not sink the whole portfolio.
- Dividendትርፍ ድርሻA share of a company's profit paid out to shareholders, usually in cash.
- Dividend PolicyA board's approach to how much profit is paid out as dividends versus kept in the business over time.
- Due DiligenceCareful research into a company or deal before you invest money or sign a contract.
- EBITDAEBITDAEarnings before interest, tax, depreciation, and amortisation; a rough operating profit measure.
- EquityOwnership interest in a company; for shareholders, it is residual claim after debts are paid.
- ETFETFAn exchange-traded fund: a basket of assets that trades on an exchange like a single share.
- Ex DividendThe status of a share when a new buyer is no longer entitled to the recently declared dividend for that payment cycle.
- Expense RatioThe yearly fee a fund charges as a percentage of assets, covering management and running costs.
- Extraordinary General MeetingEGMA shareholder meeting called outside the annual cycle to decide urgent or special company business.
- Face ValueThe nominal value printed on a bond or share certificate, used for coupons and redemption.
- Fixed IncomeInvestments that pay scheduled interest, such as bonds and treasury bills, rather than ownership stakes.
- Fundamental AnalysisStudying a company's business, finances, and industry to judge whether its shares are attractive.
- FuturesExchange-traded contracts to buy or sell an asset at a set price on a future date.
- Gross MarginGross margin is the share of sales left after the direct cost of making or buying the goods sold.
- Growth StockA growth stock is a company share bought mainly for rising earnings and price, not for high current dividends.
- HedgeA hedge is a position or contract taken to reduce the risk of a loss on another investment or exposure.
- Hedge FundA hedge fund is a private pooled fund that may use leverage, short selling, and complex strategies for returns.
- Holding PeriodThe holding period is how long you own an asset between the purchase date and the sale date.
- Income StatementAn income statement shows a company's revenue, costs, and profit or loss over a defined reporting period.
- IndexA market index tracks a basket of shares or other assets to show how that slice of the market is performing.
- Initial Public OfferingIPOThe first sale of a company's shares to the public, after which the shares can trade on an exchange.
- InvestmentAn investment is money placed into an asset hoping for income, growth in value, or both over time.
- Joint VentureJVA joint venture is a project or company owned and controlled by two or more parties who share costs and rewards.
- Junk BondA junk bond is a high-yield corporate bond with a low credit rating and a greater risk of default.
- Key Performance IndicatorKPIA key performance indicator is a measurable figure used to track whether a business is meeting a stated goal.
- LeverageLeverage is the use of borrowed money or similar debt to amplify potential gains and losses on an investment.
- Limit OrderA limit order is an instruction to buy or sell a security only at a price you set, or at a better price.
- LiquidityHow easily an asset can be bought or sold without significantly moving its price.
- Long PositionA long position means you own an asset and profit if its price rises, the opposite of a short position.
- MarginMargin is borrowed money used to buy securities, or the collateral you must keep with a broker for that debt.
- Mark to MarketMTMMark to market means valuing an asset at its current market price rather than its original purchase cost.
- MaturityMaturity is the date when a bond, loan, or other debt instrument must be repaid in full.
- Mid CapA mid cap company sits between large and small firms by market value, often a middle band of market capitalisation.
- Minority ShareholderAn owner whose stake is too small to control the company alone, relying on law and governance for fair treatment.
- Mutual FundA mutual fund pools money from many investors to buy a diversified portfolio of shares, bonds, or other assets.
- Net Asset ValueNAVThe value of a fund or company after liabilities are subtracted from assets, usually shown per share or unit.
- Net IncomeProfit left after a company pays all costs, interest, tax and other expenses for a period.
- Operating MarginOperating profit as a percentage of revenue, showing how much the core business keeps before interest and tax.
- Order BookThe live list of buy and sell orders for a security on an exchange, ranked by price and time.
- Outstanding SharesAll shares of a company currently held by investors, including institutions, insiders and the public.
- Over the CounterOTCTrading done directly between parties rather than through a central exchange order book.
- PortfolioThe collection of investments you hold, such as shares, bonds, funds and cash.
- Preference ShareA share class that usually gets dividends before ordinary shareholders and ranks higher if the company is wound up.
- Price-to-Book RatioP/BShare price divided by book value per share, used to compare market value with accounting net assets.
- Primary MarketThe market where new securities are sold for the first time and the issuer receives the money.
- Profit MarginProfit expressed as a percentage of revenue, showing how much of each unit of sales is kept as profit.
- Proxy VoteA vote cast on your behalf at a shareholder meeting by someone you appoint when you cannot attend yourself.
- Quarterly ResultsA company's financial performance report for a three-month period, often including revenue, profit and key ratios.
- Return on EquityROENet income divided by shareholders' equity, showing how efficiently a company uses owners' capital.
- RevenueThe total income a company earns from its normal business activities before costs are deducted.
- Rights IssueAn offer of new shares to existing shareholders, usually at a discount, in proportion to shares they already own.
- Risk AppetiteHow much investment risk a person or institution is willing to take in pursuit of higher potential returns.
- Risk PremiumThe extra return investors demand for holding a riskier asset instead of a safer one.
- Secondary MarketThe market where investors buy and sell existing securities among themselves after the original issue.
- Share CapitalThe capital a company raises by issuing shares, recorded in equity on the balance sheet.
- ShareholderA person or institution that owns one or more shares in a company and therefore holds an ownership stake.
- Sovereign Credit RatingAn opinion from a rating agency on a government's ability and willingness to meet its debt obligations on time and in full.
- SpreadThe gap between the best bid and best offer prices for a security, a common measure of trading cost.
- StockአክሲዮንA unit of ownership in a company, giving the holder a claim on part of its assets and profits.
- Stock Exchangeየአክሲዮን ገበያA regulated marketplace where shares and other securities are bought and sold.
- Stock SplitA company increases its share count and cuts the price per share by the same factor, leaving overall value unchanged.
- Stop-Loss OrderAn instruction to sell (or buy) if the price reaches a set level, meant to limit further losses.
- SukukIslamic finance certificates that give investors a share in ownership of an asset or project cash flows rather than a conventional interest-bearing bond.
- Supply and DemandThe basic market forces of how much is offered for sale and how much buyers want, which together set prices.
- Systematic RiskMarket wide risk that affects many assets at once and cannot be removed by diversifying across ordinary stocks alone.
- TakeoverWhen one company gains control of another, usually by buying enough shares or agreeing a purchase of the whole firm.
- Technical AnalysisA method of studying past prices and trading volume to spot patterns that some traders use to time buy and sell decisions.
- Ticker SymbolA short code of letters used on an exchange to identify a listed company or security in trading systems and news.
- Total ReturnThe full gain or loss on an investment, including price change plus any dividends or interest received over the period.
- Trading VolumeThe number of shares or contracts that changed hands in a security or market over a set period, often one day.
- TrendThe general direction of a market or security price over time, such as rising, falling, or moving sideways.
- TurnoverIn markets, the value or amount of securities traded in a period. In business, sales revenue for the same idea of activity.
- Underlying AssetThe real security, commodity, or index on which a derivative contract or structured product is based.
- UnderwritingIn capital markets, the process where an intermediary helps price and sell a new issue of securities, often taking on placement risk.
- Unrealised GainA paper profit on an investment you still hold, based on current market value being higher than what you paid.
- Unsystematic RiskRisk that is specific to one company or industry and can be reduced by holding a wider mix of investments.
- ValuationThe process of estimating what a company, asset, or security is worth using prices, cash flows, or comparison methods.
- Value InvestingAn approach that seeks shares priced below an estimate of their true worth, aiming to profit when the market revalues them.
- Venture CapitalVCEquity funding provided to early stage or high growth companies that are not yet ready for public markets.
- VestingThe schedule by which an employee or founder gains full ownership rights over granted shares, options, or other benefits.
- VolatilityHow much and how quickly a price moves up and down over a given period.
- Voting RightsThe power attached to some shares to vote on company matters such as directors, major deals, or share issues.
- WarrantA security that gives the holder the right to buy a company's shares at a set price before an expiry date.
- YieldIncome from an investment expressed as a percentage of its price or face value, such as dividend yield or bond yield.
- Zero Sum GameA situation where one participant's gain equals another's loss, so the total net result across all sides is zero.