German stocks bring up the rear | markets shares

share

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

All articles for this technical term

gross national 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

book value

1. Value at which an asset item is listed in the balance sheet (balance sheet value). If the book value is less than the value that can actually be obtained from a sale, the difference corresponds to a hidden reserve. 2. Value obtained by dividing reported equity by the number of outstanding shares.

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

cap

Price of an underlying asset or an interest rate that often determines whether the underlying asset is delivered or a cash amount is paid.

All articles for this technical term

yield

The percentage of earnings paid by a company per stock. The dividend is determined by the general meeting at the request of the board of directors. Payments to holders of dividend certificates are also referred to as dividends.

All articles for this technical term

yield percentage

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

EPS

Key stock valuation calculated by dividing the company’s earnings by the number of shares outstanding. In accordance with IFRS, the result per share is calculated on the basis of the average number of outstanding shares during the year (excluding own shares).

All articles for this technical term

leading indicators

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

All articles for this technical term

futures

Standardized exchange-traded futures contract where one party agrees to buy the underlying asset at a specified price at a specified time (long position). The counterparty undertakes to deliver (short position) or, if intended, to settle in cash. The futures exchange brings both parties together and ensures compliance with the terms of the contract, including taking over counterparty risk (clearing) and fulfillment. For this it requires a deposit (margin margin). The margin account is balanced daily (see Maintenance margin).

All articles for this technical term

Economy

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

All articles for this technical term

ratio between price and book

Share valuation metric, which is calculated as the ratio between share price and equity per share entitled to dividends.

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

current account

List of all financial transactions of a country with other countries. The most important component is the current account (demand account), which essentially comprises the trade balance. Since the balance of payments must always be in balance, because a country would otherwise run into payment difficulties, deficits on the balance of payments must, for example, be financed by net capital imports (surplus on the capital balance).

All articles for this technical term

PMI

Highly recognized, internationally widespread early indicator based on a survey of main buyers at companies about the situation and outlook for production, prices, orders, personnel needs, etc. Balance sheet values ​​above (below) 50 signal economic expansion (contraction).

All articles for this technical term

hp

Security embodying a share in a company’s share capital. PS issued in the name or bearer are issued as shares against deposits. PS includes certain legally guaranteed minimum rights (notably property rights), but no voting rights. The most important example in Switzerland: Lindt & Sprüngli.

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

futures contract

Purchase or sale contract where the mutual services are not delivered immediately but at a later time, e.g. B. Futures, Forwards, Swaps. Futures transactions in a broader sense also include options.

All articles for this technical term

Leave a Comment