When one company is bought (acquired) in part or whole by another company. The buying company can then make decisions about the running of the company that has been bought. It is a common strategy for business growth. The company that is bought may see an increase in its share price, whereas the company that is doing the buying may see a drop in share price.

A publicly available document (if the company is listed) that informs readers about the company’s financial performance, business activities, and future plans. It usually includes financial statements (showing profit, assets, cash flow, revenue, earnings per share, etc.), a letter from the CEO, and explanations of the company’s strategy and risks. The report can help retail investors understand how well the company is doing to make informed investment choices, however, needs careful scrutiny since companies can (intentionally or unintentionally) mislead readers.

Something valuable that a person or a company owns, for example: stocks, property, equipment, forms of cash, etc., which can be used or sold to generate money or provide future benefits. Assets can be the investments a retail investor holds, like shares in companies, or bonds, which represent their ownership or claims to value.

A financial statement that shows what a company owns (its assets), what it owes (its liabilities), and the amount invested by shareholders (equity) at a given point in time. This snapshot provides investors with a view of a company’s health by listing components which can show how stable and valuable a company might be. As with annual reports, these need careful scrutiny since companies can (intentionally or unintentionally) mislead readers). 

A financial institution that should safely hold money, offer checking/current accounts, savings accounts, and loans. They allow people and companies to manage money, obtain loans, and invest through its services and banking products. They make money my charging interest on loans and fees for services. 

A ‘bear’ is one who expects share prices to fall, and when they are feeling ‘bearish’ about a company will be either averse to or sell stocks in that company. A bear market refer to when prices in the stock market fall by 20% or more over a period and is associated with pessimism about future gains. Negative sentiment will dominate the market, and it often coincides with periods of economic downturn. 

A kind of loan or ‘IOU’ where you lend money to the government or a company for a set period of time. In return, they agree to pay you regular interest and return you your original money when the bond matures. Bonds are a way to earn fixed interest and are considered relatively safe compared to most stocks. 

When the price of assets like stocks rises rapidly and far beyond their true value. Bubbles are caused by excitement and speculation, usually in ‘cutting edge’ sectors like tech (see .com bubble), however, the bubble usually bursts, causing prices to fall sharply which can lead to significant losses for investors.

A famous American investor, known as one of the most successful investors ever. Chairman of Berkshire Hathaway (and CEO until the end of 2025), he is one of the most successful investors of all time. He is famous for his ‘value investing approach’: buying solid companies and holding them for the long term. He is admired for his investment success and his modest lifestyle.

A ‘bull’ is one who expects share prices to rise, and when they are feeling ‘bullish’ about a company will be either positive towards or buy stocks in that company. A bull market refer to when prices in the stock market rise by 20% or more over a period and is associated with optimism about future gains. Positive sentiment will dominate the market, and it often coincides with periods of economic advances.

An investing strategy where the investor buys a stock/share when its price is comparatively low and then aims to sell later when its price has risen. It can be difficult to predict exactly when prices are at their lowest or highest, but this strategy if executed perfectly will maximise profit. 

An investing tactic that suggests one should invest in companies or products that they regularly use or understand. It allows one to have more confidence in a company based on their personal experience. It can help to inform a purchasing or selling decision, but it is important to remember that familiarity is not the only metric of whether a company is a good investment or not.

A contract that gives you the right (but not the obligation) to buy a stock at a set price before a specific date. You will pay a premium for this option. If the stock’s price goes up, you buy it at the strike price and potentially make a profit, but if the price does not rise then you do not have to buy the stock but you will still pay the premium. 

The financial resources or assets that individuals or businesses use to generate value or profit over time. For retail investors, this can be the money they invest in stocks, bonds, or other assets to grow their wealth. It can include the physical assets like real estate, jewellery, cars, equipment, etc., that may produce income or represent value. 

The total value of all a company’s outstanding shares of stock. It shows how much the company is worth in the stock market and is calculated by multiplying the current share price by the total number of shares available. For retail investors, it helps to understand the company’s size and compare it with others. 

The profits you make when you sell an investment like stocks for more than you originally paid. For a retail investor, they represent the increase in value of their assets that become real when they sell. Capital gains can be short-term (held for a year or less) or long-term (held for more than year), which may affect how much tax you pay on profit. UK Stocks/Shares ISA holders do not pay capital gains tax on their holdings within the ISA up to £20,000 invested per year. 

Money you have readily available to use, such as physical currency or money in your bank account. For retail investors cash means funds that are easily accessible, which can be used to pay for expenses or to invest. It is the most liquid asset but usually offers lower returns compared to investment like stocks or bonds. Inflation means that cash will certainly lose its value unless it is held bearing interest at or above the inflation rate.

The amount of money coming into and going out of a business or personal account over a certain period of time. For retail investors it shows how much cash is available to pay expenses, invest or save. Positive cash flow means more money is coming in than going out, and is a good sign of financial health. 

Often called ‘The Square Mile’, it is the historic and financial district at the heart of London. One of the leading financial centres, it is home to the London Stock Exchange, Bank of England, and hundreds of global banks and financial institutions.

Measures the average change in time in the prices consumers pay for a set of common goods and services (a basket), such as food, housing, and transport. It tracks inflation, showing how the cost of living is rising or falling, which is important to retail investors to understand how inflation might affect their investments and purchasing power. 

The practice of buying and selling financial instruments like stocks within the same trading day, aiming to profit from very short-term price movements. At the retail level., it is an extremely risky and typically unprofitable form of gambling which sees individuals quickly open and close multiple trades within a single day, using strategies focused on capturing small gains while avoiding overnight risks. 

Money you borrow from someone, such as a bank, which you must pay back later usually with additional interest. Debt is used to buy things that can’t be afforded right away and can be used to fund investments but it is critical to have a plan to repay it to avoid financial problems. 

A strategy focused on protecting money and reducing risk, especially during uncertain or declining markets. It often involves investing in stable, reliable assets like blue-chip stocks, bonds, and cash that provides a steady income, even if it offers low overall returns than riskier investments.

When the overall price of goods and services in an economy fall over time, making money more valuable because you can buy more with the same amount. While it may seem positive, it can signal weak demand and an economic slowdown which will in itself hurt businesses and jobs. 

When a company’s stock is removed from a stock exchange, meaning it can no longer be bought or sold there. This can happen voluntarily if the company wants to go private or to cut costs, or it can happen involuntarily if the company fails to meet the exchange’s rules, like minimum share price or financial requirements. For retail investors, delisting usually means less ease in trading those shares and possibly lower share value or liquidity.

An investment strategy where you spread your money across different types of investments, sectors, ad regions, to lower the risk of losing value. The idea is that when some investments perform poorly, others may do better, balancing out overall returns. 

Payments made by a company to shareholders from its profits as a reward for investing. They are usually paid regularly and can be given in cash or additional shares. Dividends provide investors with income without having to sell their shares.

An investment strategy where you invest a fixed amount of money regularly in a specific asset, regardless of price, to reduce the risk of buying all at once at a high price. This can lower your average cost-per-share over time, making it easier to manage a market’s ups and downs.

An historic period in the 1990s where many investors speculated heavily on internet-based companies causing their stock prices to rapidly rise to unsustainable levels. The bubble burst around 2000, leading to a sharp stock market crash and the failure of many internet companies. It is an example of how speculation and excitement can inflate market values beyond their real business performance.

The profits a company makes after subtracting costs and expenses from total revenue. For retail investors, earnings indicate how well a company is performing financially and can influence the stock price and potential dividends they mights receive.

A measure that shows how much profit a company makes for each share of its stock. It is calculated by dividing total profits by the number of shares outstanding. It helps investors understand a company’s profitability on a per-share basis and compare it with other companies. 

An investment fund that holds a mix of stocks, bonds, or other assets that can be bought or sold on a stock exchange like a single stock. ETFs allow investors to easily and cheaply invest in many companies or assets at once, giving diversification and flexibility. 

The costs you pay when buying, selling, or holding investment, including broker fees, management fees, and transaction charges. For retail investors, understanding fees is crucial because they reduce your overall returns even if your investments perform well. Lower fees over time can help you keep more of your investment gains.

Professionals who examine financial data, economics, trends, and companies to help businesses and individuals make informed investment decisions. They analyse financial statements, create models, and provide recommendations on whether to buy, sell, or hold an investment. 

Places where people buy and sell financial assets like bonds, stocks, currencies, crypto, etc. Financial markets include buyers and sellers, and companies may ‘list’ on them to raise money, while investors use them to trade assets with the aim of earning a profit. 

Documents that companies provide regularly that describe financial health and performance. They include key information like profits, assets, debts, and cash flow, helping investors understand how well the company is doing and make informed investment decisions.

A broad range of services provided by banks, brokers, insurance companies, investment firms, etc, that help people manage money, invest, borrow, and protect their assets. For retail investors, financial services include things like opening investment accounts, getting advice, buying and selling stocks, managing loans, and insurance products.

Official documents that show a company’s financial health at a specific time. They include key reports like the income statement, balance sheet, and cash flow statement. They help investors understand how a company might be performing.

Estimates or predictions of a company or sector or market’s future financial performance based on analysis of data, current trends, and expected business conditions. They help investors plan ahead by projecting revenues, expenses, and cash flow over time, and are used as points of comparison for actual results. 

The intentional act of deception to gain money or financial advantage by tricking or misleading others. It is typically highly illegal while at the same time very inefficient and unsustainable. In investing, it involves false information, fake promises, hiding facts, to take money from investors. Retail investors are targets for fraud and should educate themselves of the signs of fraud in order to protect their money.

Financial Times Stock Exchange - a group that manages stock market indexes like the FTSE100, which tracks the largest 100 companies by market cap on the London Stock Exchange.