What is a tradable unit of a company's equity called?
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Share
Shareholders are part-owners of the company.
💡 Did you know? Shares can rise and fall: that is the risk.
All questions with answers
What is the profit share a company pays out to shareholders called?
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Dividend
It is a source of return besides price gains.
💡 Did you know? Some firms have raised dividends for decades.
What is the organised marketplace where securities are traded called?
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Stock exchange
Major exchanges include New York, London and Frankfurt.
💡 Did you know? The New York exchange is the world's largest.
What is a figure that bundles the prices of many shares, e.g. the DAX, called?
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Index
The DAX bundles 40 large German firms.
💡 Did you know? The US S&P 500 covers 500 companies.
What are rising (optimistic) and falling (pessimistic) markets called on the exchange?
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Bull and bear
The bull thrusts up, the bear swipes down.
💡 Did you know? Bronze bull and bear stand outside the Frankfurt exchange.
What is the whole set of an investor's holdings called?
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Portfolio
Spreading (“diversification”) lowers risk.
💡 Did you know? “Don't put all your eggs in one basket.”
What is an exchange-traded fund that often simply tracks an index called?
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ETF
ETFs are usually cheaper than actively managed funds.
💡 Did you know? They made broad investing easy for everyone.
What is a fixed-interest security with which states or firms borrow money called?
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Bond
The buyer receives regular interest (the “coupon”).
💡 Did you know? Government bonds are seen as relatively safe.
What is an investment's gain relative to the capital invested called?
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Return
Higher returns usually mean higher risk.
💡 Did you know? It is often stated as a percentage per year.
What is the measure of how strongly a price fluctuates called?
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Volatility
High volatility means large swings.
💡 Did you know? The “fear index” VIX gauges expected volatility.
What is a company's first listing on the stock exchange called?
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IPO
The firm sells shares to the public for the first time.
💡 Did you know? Successful IPOs can make founders rich overnight.
What is the intermediary through which investors buy and sell securities called?
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Broker
Online brokers opened trading to everyone.
💡 Did you know? It usually charges a fee for its service.
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