Financial investments where the return investors make is linked to a formula based on specific factors (e.g. the performance of an index, perhaps subject to a minimum and a maximum return). These products can be complex and risky.

The risk associated with the overall market for shares (stock market) and which cannot be diversified away.

The use of patterns of past price movements of shares (or other financial assets) to forecast their likely future price. This technique is also known as ‘chartism’ as it involves studying charts of past price levels.

An investment fund that selects companies whose shares appear to be cheap when measured by ratios such as the price-earnings (P/E) ratio.

The markets where financial institutions transact with each other (including lending and borrowing money).