The stock market is looking for bottom | markets shares

share

Security representing a share in the capital of a public company. It guarantees the owner membership rights (voting rights and voting rights at the general meeting) and property rights (right to share in the profits, share in capital increases or in the liquidation result).

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bear market

Price collapse on the stock exchange (also called bear market), which lasts a long time. Often also defined as the correction must be at least 20% and extend over at least two months. Opposite: bull market.

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stock Exchange

Regular market organized according to fixed customs. Depending on the goods traded, one speaks z. B. from securities, securities, foreign exchange, commodity exchanges or exchanges for derivative instruments (futures exchanges).

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fed

The US Federal Reserve, to which the twelve Federal Reserve Banks are affiliated. At the top is the Governing Board (Washington) in Washington, which also provides the majority in the Open Market Committee, where monetary policy is decided.

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leading indicators

Variables used in economic research that make it possible to identify economic development at an early stage, such as incoming orders from industry or building permits.

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GM

An AG’s supreme body. In addition to the ordinary ordinary general meeting, an extraordinary general meeting may also be convened.

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hedge funds

Investment vehicles typically housed in off-shore financial centers without strict supervision, such as the Bahamas or the Cayman Islands. This allows them to work with borrowed capital (cf. leverage) and derivatives. You can bet on both rising and falling stock prices. The hedge fund manager has typically invested a large part of his private assets in the fund and is compensated primarily by a performance fee.

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inflation

Price increase or currency depreciation. The change is indicated as the inflation rate. Often causes central banks to pursue a restrictive monetary policy (high key interest rates), which weighs on stocks and bonds. Opposite: disinflation, deflation.

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insolvency

Occurs when a debtor fails to pay interest and installments on time and in full. According to the practice of rating agencies, a payment delay of more than thirty days is considered a default. However, the default does not necessarily mean that the creditor loses all the capital because a bankruptcy dividend is normally distributed during the bankruptcy proceedings. In the case of credit derivatives, the default is considered a credit event. According to the rating agencies, bond rescheduling (interchangeable) also counts as default.

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P / E

Share price in relation to earned or expected earnings per. dividend-bearing share. The share valuation ratio indicates how many times earnings per share is included in the share price. P / E can be used to compare different stocks within an industry.

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Economy

Often used synonymously with the state of the economy as a whole. Research emphasizes the economic course of economic growth (upturn, boom, downturn, recession, depression). Therefore, the term business cycle is also used in English.

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price-earnings ratio

Share price in relation to earned or expected earnings per. dividend-bearing share. The share valuation ratio indicates how many times the earnings per share is included in the share price. P / E can be used to compare different stocks within an industry.

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key interest rates

Central bank interest rates to control the money supply with a signal effect on monetary policy, known as the Federal Funds Target Rate in the United States. The Swiss National Bank uses a target range for the three-month Libor rate.

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Central Bank

Economic institution responsible for providing the economy with money. At the same time, it should create monetary stability and, depending on the Statute, full employment and appropriate economic growth. In Switzerland, this is the SNB.

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PMI

Highly recognized, internationally leading indicator based on a survey of main buyers at companies on situation and prospects for production, prices, orders, staffing needs, etc. Balance values ​​above (below) 50 signal economic expansion (contraction).

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real interest rates

Nominal interest rate minus expected inflation. The real interest rate thus expresses the interest income or the adjusted interest debt adjusted for purchasing power losses.

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Research

Systematic safety assessment as a basis for investment policy. It is divided into fundamental analysis and technical analysis.

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risk

In financial market theory, the risk of an investment is measured by the fluctuations in earnings. Theoretically, risk and return are directly related: The higher the risk taken, the greater the return on the corresponding investment must be in the long term (cf. risk management).

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raw material

Is usually standardized and traded on a forward basis (cf. futures). The palette ranges from precious metals to base metals, grains and oilseeds, soft ingredients, meat and milk for energy.

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SMI

Calculated on the basis of free float for the twenty most important listed Swiss companies. SMI is not dividend-adjusted, so it is a price index.

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short position

Position as a result of the sale of a security that is not excluded by the purchase of the same security (position à la baisse).

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growth stocks

Shares in companies that are said to have above-average earnings capacity (eg in high-tech sectors). Growth equities therefore have a high price-earnings ratio (cf. value equities).

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yield curve

Shows the current return (return to maturity) of interest-bearing investments with different maturities and the same quality. Because market expectations are embedded in current interest rates, the yield curve reflects a consensus investor forecast. Examples are the Confederation yield curve and the swap yield curve.

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