Where stocks outperform bonds | markets shares

share

Security representing a share in the capital of a public company. This ensures the owner membership rights (the right to vote and the right to vote at the general meeting) and ownership (right to a share in the profit, share in capital increases or in the liquidation result).

All articles for this technical term

share return

Return on a share investment expressed as a percentage: The dividend return represents the dividend paid out in one year as a percentage of the price In practice, the expected dividend return is relevant as a selection criterion, but it is not guaranteed.

All articles for this technical term

tape

Loans on the capital market. Bonds can have fixed or variable interest. The fractions of a bond that are designed as securities and are therefore negotiable are called liabilities or bonds.

All articles for this technical term

Benchmark

A yardstick or reference value used as a benchmark for performance development (eg a stock index).

All articles for this technical term

gross domestic product

added value of an economy. The development in GDP is an important factor that affects companies’ profits and interest rates, and thus indirectly for stocks and bonds.

All articles for this technical term

stock Exchange

Regular market organized according to fixed customs. Depending on the traded goods, you speak z. B. from securities, securities, foreign exchange, commodity exchanges or derivatives exchanges (futures exchanges).

All articles for this technical term

the eurozone

Merger carried out by eleven countries of the European Union on January 1, 1999 (since 2001 also Greece, since 2007 Slovenia, since 2008 Malta and Cyprus). The participants have transferred the monetary policy competence to the ECB. The national currencies were fixed against each other (exchange rate relationship) and against the common currency, the euro.

All articles for this technical term

GM

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

All articles for this technical term

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.

All articles for this technical term

P/E

Share price in relation to earned or expected earnings per dividend bearing share. The stock 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.

All articles for this technical term

price-earnings ratio

Share price in relation to earned or expected earnings per dividend bearing share. The stock 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.

All articles for this technical term

Central bank

Economic institution responsible for supplying 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.

All articles for this technical term

performance

1. Development of the price of a security. 2. A portfolio’s performance, usually expressed as a percentage, including distributions (reinvested). 3. Investment policy execution by the management of an investment association, an investment company, a hedge fund or a pension fund with a view to the investment objective.

All articles for this technical term

bonus

1. Option price paid by the buyer of an option to the writer. 2. Indicates how many percent the price of the underlying must rise to break even. The premium shows the percentage by which an underlying asset would be more expensive if an option was bought and exercised than if the stock were bought outright. 3. Conversion Bonus .

All articles for this technical term

risk

In financial market theory, the risk of an investment is measured by 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).

All articles for this technical term

risk premium

1. The difference between long and short interest rates. The interest rate spread is the simplified form of the yield curve. 2. Risk premium that the obligations of a certain debtor category or an individual debtor have in relation to a benchmark, e.g. e.g. the interest rate on government bonds or the swap rate (cf. risk premium).

All articles for this technical term

risk premium

The difference between the risk-free interest rate and the expected total return on an investment (also known as the risk premium for bonds). The higher the risk of an investment, the higher the risk premium must be. In addition, differences in returns between different investments are referred to as risk premiums.

All articles for this technical term

government bond

Bond issued by a government to meet its domestic or foreign financing needs. Government bond yields serve as a benchmark for other issuers in the same country. Unlike other countries, Switzerland does not issue any confederation bonds abroad.

All articles for this technical term

volatility

Price fluctuations on an underlying (cf. historical volatility, implied volatility, vega, volatility analysis, volatility index).

All articles for this technical term

Leave a Comment