Managing my investments glossary
Special | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL
A |
---|
AlphaA strategy where an investor believes they can estimate specific risk better than the market and can therefore obtain better returns than the market by their share selections. | |
B |
---|
Bear marketA share market where the underlying direction of share prices is downwards. The term applies to the markets in other financial assets too. | |
BetaThe relative sensitivity of the return from a share (or a portfolio of shares) to that of the overall stock market: e.g. shares that are twice as sensitive or volatile relative to the market as a whole have a beta of 2. | |
BondsCertificates of debt issues by government, companies and other institutions in order to borrow money. | |
Bounded rationalityWhere rational decision-making can be undermined by limited cognitive ability, time constraints and imperfect information. | |
Bull marketA share market where the underlying direction of share prices is upwards. The term applies to the markets in other financial assets too. | |
C |
---|
Consumer Prices Index (CPI)The leading measure of the prices of (a basket of) consumer goods in the UK. | |
D |
---|
DiversificationThe spreading of the money invested across a range of assets (e.g. shares). | |
Dividend payout ratioThe proportion of a company's earnings after tax ('net income') that is paid out to shareholders in dividends. | |