A company that evaluates and rates the creditworthiness of companies or governments, indicating how likely they are to repay their debts. These ratings help investors assess the risk of investing in bonds or other debt securities issued by those entities.

An asset class comprising land or permanent building structures like houses, offices, or factories. It includes the natural resource on the land and is a critical asset that can be bought, sold, or owned. 

A REIT is a company that owns, operates, or finances income-producing real estate. REITs allow investors to earn income from real estate without having to buy or mange properties themselves, often paying regular dividends like stocks do. 

When a company makes major changes to its management, finances, or operations to improve efficiency, reduce costs, or recover from financial problems. It can involve reorganising departments, selling assets, or changing debt arrangements to strengthen the business.

Refers to the context of individual consumers for personal use, often in comparatively small quantities. 

One of the billions of individual people who buy, sell, and own stocks, bonds, mutual funds or other assets for themselves at the ‘retail’ level. They make investment decisions for themselves and their personal financial goals rather than on behalf of organisations. 

The gains or losses you make from an investment over time, usually shown as a percentage in relation to the money originally invested. Positive returns mean money has been made or grown, and negative returns mean money has been lost. 

A measure of how well a company is using the money invested by shareholders and lenders to generate profits. It shows the percentage return a company earns on its invested capital, helping investors assess the efficiency and profitability of the business.

The total amount of money a company earns from selling its goods or services before subtracting expenses. 

The chance you could lose money on a venture or investment. The degree of risk is often related to the likely returns: high risk is usually linked to high potential reward. 

A formula that helps you estimate how many years it will take for an investment to double in value, based on its annual rate of return. You divide 72 by the expected annual return percentage to get the approximate doubling time. 

Protecting the original amount of money you invested so that it does not lose value, even if returns are limited. 

A bank account where one can safely keep money while earning some interest. It is easy to access these savings when needed, making it a good choice for short-term goals or emergency funds.

Financial assets that you can buy, sell, or trade, such as stocks, bonds or options. They represent ownership or a creditor relationship with a company or government and are the main tools retail investors use to invest money. 

A US Government Agency that regulates the stock and securities markets to protect investors and keep markets fair and transparent. It requires public companies to share important financial information and works to prevent fraud and market manipulation. 

The process of examining financial assets like stocks or bonds to understand their true value and investment potential. It helps investors decide if a security is prices fairly, undervalued, or overvalued by studying company statements, industry trends, and risks. 

Representations of units of ownership for a company. When you buy a share you own a small part of that company and therefore become entitled to a portion of the company’s profits (through dividends) and sometimes a vote on important company decision. Shares increase or decrease in value based on the company’s performance and market conditions.

Someone or some company that holds shares. 

A bet that a company’s share price will fall. Short selling is a strategy where an investor borrows a share, sells it, then buys it back later at a lower price to make a profit. The losses can be unlimited if the price rises instead of falls, hence it is a very high risk strategy. 

Shares of a company with a market value generally between $250 million and $2 billion. These companies often grow quickly and can often offer higher potential returns, however, come with higher risk and price volatility compared to larger companies. 

A form of gambling where investors take very high risks focused on short-term price movements in assets they purchase in order to make large profits. 

A share in ownership of a company representing a claim on its profits and assets. See shares. 

Someone who sells stocks, acting as a middleman between you and the stock market, for a fee.

A person or entity that owns shares. See shareholder.

A collection of places and systems where people buy and sell shares of publicly traded companies, allowing investors to own part of companies and potentially profit from their growth. 

When a company divides existing shares into more shares, lowering the price per share but keeping the total investment value the same. This makes the shares more affordable and easier to trade, more liquid, especially helping retail investors buy in without changing the company’s overall value.

A ratings agency and index provider. 

A mid-cap stock market index by S&P that tracks the performance of 400 medium-sized US companies. Investors may use S&P400 index funds or ETFs to invest in a broad range of mid-cap US companies.

A stock market index by S&P that tracks 500 of the largest publicly traded companies in the US, representing about 80% of the US stock market’s total value and is widely used as a benchmark to gauge the overall health of the American economy. Investors often use S&P500 index funds or ETFs to invest in a broad range of major US companies. 

A small-cap stock market index by S&P that tracks the performance of 600 small-sized US companies. Investors may use S&P600 index funds or ETFs to invest in a broad range of small-cap US companie

A simple tool used to evaluate a company’s Strengths, Weaknesses, Opportunities, and Threats (SWOT). It helps investors understand a business’s internal advantages and challenges, as well as external factors that could affect its success or risk. 

When one company buys enough shares to gain control over another company, known as the target. Takeovers can be friendly where both companies agree, or hostile where the target company resists. The acquiring company then controls the target’s operations, assets, and decision making. The acquiring company usually sees a short-term drop in share price while the target may rise. 

Money paid to the government on the income or profits you earn. Dividends or capital gains can be subject to tax. Taxes reduce your overall returns and rates may vary depending on how long you have held the investment for and the total income. 

Describes legal methods to reduce the amount of taxes you own. It involves planning finances to take advantage of deductions, credits, or other tax rules allowed by the law to lower your tax bill. 

Describes illegal methods to reduce the amount of taxes you owe by committing fraud (e.g. hiding income, underreporting earrings, or breaking tax laws). It is punishable by fines, penalties, or imprisonment. 

A method investors use to study past stock price movements and trading volumes to predict future price trends, focusing on patterns and charts rather than a company’s financial health to make buying or selling decisions. 

Short codes made up of a handful of letters that represent a specific publicly traded stock or security on a stock exchange. They help investors quickly identify, track, and trade shares without confusion. They often reflect the company name, for example the ticker for Ferrari is RACE, and the ticker for Chemring Group is CHG.L

The process of buying and selling financial assets. It involves watching price movements and making decisions to buy low and sell high, sometimes over the long term and sometimes over very short time periods. 

Not knowing what will happen in the future, making it hard to predict investment outcomes. It reflects a lack of clear information about events that can affect economies and is a challenge for investors making decisions. 

When a stock’s price is lower than what its actual worth or financial performance justifies. It’s largely subjective, but can increase the risk a stock’s price will rise as the market discovers its true value. An undervalued stock represents a good opportunity to buy cheaply and potentially gain.

A European Regulatory Framework for investment funds that allows them to be sold in EU countries with common rules. UCITS means Undertakings for Collective investment in Transferable Securities and aims for funds to be designed as safe, transparent, and accessible for retail investors, offering diversified and liquid investment options. 

Refers to the true worth of a company or stock based on its fundamentals like earnings, assets, and growth potential. Retail investors look for stocks trading below this value, called undervalued, aiming to buy at a discount and profit when the market corrects the price.

The process of determining the true or fair value of a company’s stock based on its financial health, earnings, assets, and growth prospects. It helps investors decide if a stock is priced too high, low, or fairly in the market.

How much and how quickly the price of a stock or other asset moves up and down. High volatility means prices change rapidly and unpredictably, which can mean higher risk but also more trading opportunities for investors.

The total number of shares or contracts traded during a specific period, usually within a day. It shows how actively a stock is being bought and sold, indicating the level of interest and liquidity in that stock. 

New York City’s Financial District that represents the heart of US financial markets and capitalism. Home to the NYSE and many major financial services providers, the term refers to the US financial industry as a whole and its influence on the economy.

The money a company has available to cover short-term expenses and operate daily. It is calculated by subtracting the company’s short term debts (liabilities) from its short-term assets like cash, inventory, and receivables. Positive working capital means the company can easily pay its bills and invest in growth. 

The income an investor earns from an investment, usually expressed as a percentage of the investment’s current value or purchase price. It includes interest or dividends paid and helps investors understand how much money their investment generates over time.