Glossary of Stock Trading and Investment Terminology
Exchange traded funds (ETF) are the ones that track an index but are traded like stocks on the Australian Securities Exchange (ASX). In case of ETF, the shares are bundled together in the index so that the traders can easily sell or buy them through a single transaction.
Relative Strength Index or RSI is a technical analysis indicator that determines the magnitude of gains against the magnitude of losses over a certain period of time. RSI is widely used to determine whether a market is overbought or oversold. The calculation involves doing analysis of the bullish ranges against the bearish ranges for a certain period of time which is usually 14 days.
The calculation of RSI is done in the following way:
RSI = 100 - (100 / 1 + RS)
In order to make personal superannuation contributions, those who are aged within the range of 65 and 74 are required to meet the work test. As far as the work test is taken under consideration, an individual is required to be employed for a minimum of 20 hours gainfully in a consecutive period of 30 days (during the financial year when the contributions are made). It is to be mentioned that self employment or employment in order to gain or reward in any sort of profession, occupation, business, trade, calling or employment is considered valid.
Blue chip companies are nationally known companies whose dividends are deemed to be reliable. Blue chip companies issue blue chip stocks, generally high priced but with low yield. Although blue chips are considered to be stable, some companies still fall beyond expectations, like telecommunications companies crashing during the dot.com years. Blue chip stocks are listed in Standard & Poor's ASX 20 with prices usually following the S&P500.
Risk free rate is the minimum rate you get from a zero risk investment. As there is no such thing as a risk-free investment, this rate is theoretical. In practice, short-dated Government bonds—which are regarded as stable—are often used as the risk free rate.
The term agribusiness investments refer to investments in various agricultural sectors including timber and wine. In the case of agribusiness investments, an investor grows crop and the cost involved with it (which includes the expense of establishment and ongoing expenses) is normally considered as business expenses which are tax-deductible against other earnings. The earnings that a crop grower generates through the sale of the crop are considered as assessable income.
Benefits of investing in Agribusiness
If you want to trade the overall stock market with a single trade, then Share Price Index Futures or SPI futures and options and the options contracts might be the right choice. Trading the SPI 200 is similar to trading a balanced share portfolio that tracks the S&P/ASX index. Share Price Index Futures tracks the S&P/ASX 200 index and considered most popular among the future contracts. It is to be mentioned that in case of the SPI, the transaction can be filled within seconds.
Relation between SPI 200 and S&P/ASX 200
EBITDA refers to the earnings before interest, taxes, depreciation and amortisation. This is a type of measurement process which allows an investor to have some idea about how much money a company is generating before the deduction of taxes, deprecation and amortisation. It is very much important for any investor to know how much money a particular business is making before deciding whether to invest money in that business and EBITDA is considered as one of those methods that can be used by the investor to find that. EBITDA is calculated through the following formula:
The London Metal Exchange (in short LME) is known as the premier non-ferrous metals market of the world which offers options and future contracts for various types of metals including aluminium, copper, lead, tin and zinc. In addition to this, it offers two regional aluminium alloy contracts as well. The exchange has started trading plastic during 2005. It is to be mentioned that, iron and steel are not traded at LME since it is a non-ferrous exchange.
Investing at London Metal Exchange: Different Trading Methods
A bonus issue (also called capitalisation issue, bonus shares, scrip issue) is shares given to shareholders free. These are shares you do not have to pay for and a means for the company to distribute historic retained profits. No cash changes hands between investors, so this is an accounting transaction. Bonus issues can boost the marketability of stock.
- What Are Broker Recommendations?
- Free Tickets to Trading & Investing Seminar & Expo ($18) Brisbane 2013
- Stock Calc App
- All About Warrants
- Introduction to Exchange Traded Funds
- Introduction to Exchange Traded Funds: Features
- Introduction to Exchange Traded Funds: Domestic ETFs
- Introduction to Exchange Traded Funds: International ETFs
- Exchange Traded Commodities
- Exchange Traded Commodities: In Summary
- How much Should I Pay for an Option?
- Options Trading: Time Value
- Options Pricing
- Why You Should Trade Index Options
- How to Weather out Flat Markets Using Options
- Australian Stock Scan
- Australian Online Share Trading
- List of Trading Books
- Interesting Thoughts about the Australian Dollar
- What's the Meaning of Hawkish?
- Do You Know How To Use the P/E Ratio
- Trading, Religion and Politics - Do They Have Anything in Common?
- Shares that are Volatile that Double and Half in the Short Term
- Telstra (TLS) T3
- Margin Call by E-mail
- The Cost of Holding a Position
- Lack of Disclosure: Compensation from ASX Listed Company
- Unrealistic Returns and Benchmarks
- CMC Markets Down
- Quality versus Quantity Forex Trading
- Woolworths 1H Sales $30.7bn up 3.2%
Date added 31-01-2013
- ASIC Fines CommBank's CommSec
Date added 25-09-2012
- Industry Super Network Calls to Ban High Frequency Trading (HFT)
Date added 22-09-2012
- NAB Launches Online Share Trading Platform
Date added 19-09-2012
- Reserve Bank of Australia Says 23 Countries Holding AUD
Date added 18-09-2012
- Australia Post Digital Mailbox
Date added 10-09-2012
- Winners and Losers of Trading for Week 2
Date added 16-01-2012
- 2012's First Week of the Best and Worst Traded Stocks
Date added 09-01-2012
- 2011's Last Best and Worst Traded Stocks
Date added 05-01-2012
- Best and Worst Pre-Christmas Traded Stocks
Date added 30-12-2011
- Trading Winners and Losers for Dec. 12-16
Date added 19-12-2011
- Best and Worst Traded Stocks for Dec. 5-9
Date added 13-12-2011
- Top 3 Best and Worst Traded Stocks
Date added 05-12-2011
- ASX Glitch Trading Halt
Date added 27-10-2011
- Worst Trade Stocks (and the Best)
Date added 06-08-2011
Top 150 Public Companies Listed on the Australian Stockmarket as at 29/05/2009
- BHP Billiton
- Westpac Banking Corporation (WBC)
- Commonwealth Bank of Australia (CBA)
- National Australia Bank (NAB)
- Telstra (TLS)
- News Corporation (NWS)
- Woolworths Limited(WOW)
- Woodside Petroleum Limited (WPL)
- Rio Tinto
- Westfield Group (WDC)
- Westfarmers Limited (WES)
- QBE Insurance
- Newcrest Mining Limited (NCM)
- Origin Energy Limited (ORG)
- Santos Limited (STO)
- AMP Limited (AMP)
- Macquarie Group (MQG)
- Foster’s Group Limited (FGL)