Trade protectionism is a type of policy that limits unfair competition from foreign industries. It’s a politically motivated defensive measure. In the short run, it works. But it is very…

In the simplest terms, liquidity risk refers to the likelihood that an investment won’t have an active buyer or seller when you are ready to buy or sell it. Therefore,…

The Jamaican financial market went from one to two companies listing on the market each year to approximately ten for 2018. With so many companies choosing to raise funds on…

A bond where the issuer has the option to redeem the bond prior to the redemption date. If you liked this article and want to read other great stories, try…

The difference in yield between different types of bonds, for example between government bonds and corporate bonds. Also referred to as yield spread.   If you liked this article and…

The shares, other security, or index, on which a derivative instrument is based.   If you liked this article and want to read other great stories, try our Archives. Also…

Tender is a method of issuing securities whereby investors are invited to bid, subject to a minimum price. The allocation of the securities is made according to the prices bid….

Return on Equity is a method of valuation of company accounts which can determine how a company is spending its money, calculated by dividing a company’s net income by its…

Chartism is the study of historical market data to determine trends and to try to predict future movements.   If you liked this article and want to read other great…

Market impact is a measure of each trade’s average execution price versus the volume weighted average price of the stock for that trading day. It is thus a measure of…

Flotation is the first issue of shares to the public in a company new to the stock market. If you liked this article and want to read other great stories,…

Blue Chip is the name used to describe companies that are perceived to be high quality. If you liked this article and want to read other great stories, try our…

The Barbell Portfolio is a portfolio of bonds which is concentrated in short and long-dated bonds with little or no exposure to intermediate maturity bonds. If you liked this article…

The Ticker Symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol may consist of letters, numbers or a combination of both. If you…

Dividends are the part of a company’s profit after tax earnings which is distributed to the shareholders in the form of cash or shares. If you liked this article and…

Fundamental Analysis is an analysis of a company taking into account all the factors that affect its cash flow, profits, business, the industry it operates in and the economy in…

London Interbank Bid Rate – LIBID is the interest rate at which prime banks will offer to take funds on deposit from other banks in the London Interbank market. If…

Over Subscription is when more applications are received than there are shares for an offer. In this event, applications are usually scaled down pro rata. If you liked this article…

The Federal Reserve Systems’ Board of Governors that oversees Federal Reserve Banks and establishes monetary policy in the US. If you liked this article and want to read other great…

Authorised Share Capital is the amount of share capital that a limited company is authorised to issue. This does not provide any indication of the worth of the company which…

The Bear market is a market where prices decline against a background of widespread pessimism. If you liked this article and want to read other great stories, try our Archives….

The Bull Market is a market where prices increase against a background of widespread optimism. If you liked this article and want to read other great stories, try our Archives….

Bid-offer spread is the difference between the price at which financial securities and units in a pooled fund can be sold (bid price) and bought (offer price). If you liked…

Ordinary shares usually have associated voting rights that enable the holder to influence the management of the company. If you liked this article and want to read other great stories,…

Accrued Interest is interest earned on a bond since the last interest payment date. If the bond is sold, the accrued interest is paid (gross of tax) to the seller…

Investing in any securities not denominated in the investor’s own base currency introduces currency risk due to the volatility of foreign exchange rates. If you liked this article and want…

Gold is potentially attractive as an investment due to its high liquidity, its status as an asset held by central banks, and because it is seen as a good source…

Lifestyle Investment is a process whereby a member’s investments are adjusted depending on their age. Typically, assets are switched from equities to bonds and cash as retirement approaches. If you…

A measure of the income return earned on an investment. In the case of a share, the yield expresses the annual dividend payment as a percentage of the market price…

Illiquid assets are those assets that cannot be easily bought, sold or converted into cash. It may often be impossible to convert the asset to cash until the end of…

Market Capitalisation is the total value of a company, as determined by the market price per share multiplied by the number of shares in issue. If you liked this article…

Alternative Investments are investments other than mainstream equities and bonds. New capabilities sometimes referred to as “alternatives” include hedge funds, private equity, infrastructure, gold and commodities. Real estate is also…

Each bond issue is given a credit rating according to how much investment risk is associated with the bonds – i.e. how likely it is that the issuer will be…

What does it take to become entrepreneurs?  Do you have what it takes? Find out here. Here are five attributes that set successful entrepreneurs apart: 1. Passion and Motivation Although…

An Initial Public Offering referred to as an IPO is the first time that the stock of a private company is offered to the public. IPOs are often used to…

An Asset Class is a collective term for investments of a similar type with a unique combination of investment characteristics. The main asset classes are: Equities Bonds Cash Real estate…

Hedging is a strategy that aims to reduce risk. For example, a forward currency transaction might be executed when investing in overseas shares or bonds to avoid the volatility of…

There are millions of equities on the markets but not all are worth your time, and as such, all dividend stocks are not the same, so here are five tips…

Many beginning investors and even some moderately experienced investors may have issues with understanding the exact workings of bonds and the bond market as a whole. The bond market may…

What is wealth? Can I become wealthy? How do I become wealthy? Should I invest in the stock market? These are all questions that we might find ourselves asking at…