IPO: Is short for Initial Public Offering. It means a company is popping its stock exchange cherry and its shares are being made available for sale to the public for the first time.
Direct listing: Also known as DPO (Direct Public Offering). This is a much rarer way of joining the stock market and can have a big effect on the price.
Stock Split: A stock split is when a company divides the existing shares of its stock into multiple new shares to boost the stock’s liquidity.
Sustainable investing: Means combining the best tools of traditional investing with other factors like the social or environmental impact of a business.
ESG investing: Is a strategy that primarily relies on companies’ environmental, social, and governance policies and processes scores calculated by specialist third-party agencies.
Impact investing: This strategy consists of investing exclusively in companies whose mission is to contribute to positive environmental and social outcomes.
REITs: Real estate investment trust (REIT) ETFs are exchange-traded funds (ETFs) that invest the majority of their assets in equity REIT securities and related derivatives.
ETFs: An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets, but which can be purchased or sold on a stock exchange the same as a regular stock.
Bear Market: Exists in an economy that is receding, where most stocks are declining in value.
Bull Market: Is a market that is on the rise and where the economy is sound.
NASDAQ: Nasdaq is a global electronic marketplace for buying and trading securities. It was the world’s first electronic exchange. Most of the world’s technology giants, including Apple and Facebook, are listed on the Nasdaq.
Blue Chip: Is a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.
Capital Gain (or loss): is the profit one earns on the sale of an asset like stocks, bonds, or real estate. It results in capital gain when the selling price of an asset exceeds its purchase price. It is the difference between the selling price (higher) and cost price (lower) of the asset. Capital loss arises when the cost price is higher than the selling price.
Volume: Is the amount of an asset or security that changes hands over some period of time, often over the course of a day.
Volatility: This is when there are big swings in either direction of the stock market or individual stocks. If the stock market rises and falls more than 1% over a consistent period of time, it would probably be considered a ‘volatile’ market.