It is not necessary to master the economic terms of high intensity and that are very typical of the top managers of companies. In this regard, there is no doubt that with some basic items that can satisfy this demand if the goals to achieve henceforth. Therefore, you should not give up this knowledge in any way because in this way everything will go better for you in the Stock Market from these precise moments. Not surprisingly, it will be one of the factors that will differentiate you from other small and medium investors and as a result of this trend, achieve better results in the financial markets.
So that you can fulfill these wishes from now on we are going to expose you some of the terms that most used in the investment world. You may be more familiar with some of them, but others may even surprise you with their innovation. Whatever the case, it will be one more step in your stock market learning techniques. Decidedly, you have nothing to lose and there are many objectives that you can achieve with this small dictionary bag that we are going to present to you from this very moment. Do not miss it because through it you will be in a position to earn more money that will go to your checking account.
Dictionary: what is an asset?
Financial asset: it is any instrument that is directed to investment. They are very multiple since they can be of an action of a company that is listed on the stock exchange at fixed income securities, through alternative investments such as raw materials or precious metals.
Rating agency: they are in charge of generating a securities valuation that are listed on the different financial markets. Whatever the case, some of the best known are Moody's, Standard & Poor's, and Fitch.
Savings: this is the part of the family income that is not dedicated to consumption and that can be made profitable through multiple banking products (time deposit, bank promissory notes or high-paying accounts, among some of the most important). With an average annual profitability of recent years that does not exceed the levels of the 1%.
Bullish: it is the tendency to rise for part of a security or other financial asset. Well, when they find themselves in this scenario, it opens up a real possibility for enter the respective financial markets. Not in vain, if the success of the operation is assured, at least with respect to the short term.
Capital increase, analysis, etc.
Capital increase
Fundamental analysis: simply refers to an analysis system (applicable not only to publicly traded securities, but also to any other asset) that uses the entire information available on the market. From this dynamic, and based on the data provided, the user will be able to make a choice that defends their interests as a retail investor. Whatever the case, it does not take into account the evolution of the financial asset analyzed.
Technical Analysis - This is another prediction system for financial markets. Even though for this particular case it takes into account its price evolution every day. To the extent that it offers the necessary information about that value. As an example, trade volume, entry or exit levels or breakage of supports and resistances. It is perhaps the method most used by small and medium investors to make their savings profitable, even when it is not without risks with respect to its reliability.
The stock price band
Bearish: it is the position that the investor expects a depreciation in the price of a security, and that can be pressured to favor this trend. In no way, in this position you must open positions because you will have all the ballots to leave a very important part of your investment on the road. In all cases it will be a clear sample of their prices, you can find them much lower than their current price. Not in vain, sales prevail in connection with purchases.
Band: it is something as important as the price range between which fluctuates a value. In the stock market, it can refer to the fact that their prices have moved in the same trading session between 12.45 and 12.98 euros per share. It will give you a very accurate idea of what is happening with that financial asset and you will be in a position to make a choice in the financial markets with greater guarantees of success.
Bear: if you speak English fluently, you will have no problem checking that this word is part of the financial jargon and it is identical to how bearish a security or financial asset can be. Widely used in these areas by all financial agents or those related to the investment sector.
Earnings per share: also known by its acronym, BPA, refers to the net profit divided by the number of adjusted shares for each year. Therefore, it measures the part of the profit that would correspond to each share. It is a variable used to analyze which group of listed companies should make up your next investment portfolio. Not surprisingly, it is one of the most relevant data in the stock market, as you yourself will know today.
Do you know what a blue chip is?
Blue Chip: you are facing another term with Anglo-Saxon roots and that is applied to the most recognized shares that are listed on the stock market, in this case to the Spanish one. They are securities issued by solvent companies, with good fundamental data, and that belong to the large national stocks. On the other hand, they are characterized by contracting volume it is very high and of course higher than the rest of listed companies. The blue chips of national equities are Endesa, Iberdrola, Repsol, BBVA and Banco Santander. In other words, the most important of the Ibex 35.
Junk bond: for this case we refer to a specific fixed income security that is issued with a high interest by high risk companies. If these special types of financial instruments are distinguished for something, it is because they involve a high risk suspension of payments. To the point that you can pay a very important part of the invested capital. Whatever the case, you should avoid hiring them for other factors if you do not want to find other surprises from now on.
Treasury Bond: it is the fixed income product par excellence. Where the public debt issued with a term of between six and eighteen months, approximately, stands out. With investment models that include recognized products such as government bonds, bills or obligations, with their corresponding maturities. It is not surprising that they guarantee a fixed return every year, no matter what happens in the financial markets.
Brokers as intermediaries
Bund: it is nothing more than the national bond on public debt issued by the German government and which has a 10-year maturity. It is so important because it is taken as a reference source to calculate the risk premiums of the euro zone countries, including Spain.
Head and shoulders: it is one of the most representative figures of the so-called technical analysis and is distinguished because it anticipates a Change of trend From the market. It is very important so that you can operate more successfully on the Stock Market and that is why it must be taken into account.
Model portfolio: is the composition of the recommended values by industry experts. In general, they have a validity of a certain period of time, which will be renewed little by little depending on the investor's strategies. They can adapt to user profiles that can be aggressive, moderate or conservative. In which case its composition varies.
