Money Talk: Finance and Investment Terms for Busy People
A pocket-sized guide to understanding all the financial terms associated with you and your money presented in the straightforward manner that is the trademark of Edna Carew's writing.
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All-Ordinaries index amount Australian dollar Australian Stock Exchange behalf benchmark rate Big Mac index bill of exchange borrowing broker buy or sell buyer call option cash clearing house client commodity company's corporate coupon currency debenture debt discount dividend dividend imputation economic Edna Carew entitlement equity example exchange rates face value financial instrument financial markets fixed-interest foreign-exchange futures contract futures market hedge holder income individual inflation interest payments interest rates investors issuer lender liabilities liquidity loan loss margin market price maturity measure ment mortgage number of shares offer operating Opposite option an option option contract option spread options trading paid party portfolio position preference shares premium profits purchase put option quote rate of return ratio repurchase agreement Reserve Bank securities seller settlement settlement risk share price shareholders sold Sydney Futures Exchange transaction underlying asset unit trust usually yield
Page 88 - Premium is also the opposite of discount. price-earnings ratio (P/E) a yardstick for measuring the value of a company's shares. It shows the relationship between the market price of a company's shares and the earnings per share.
Page 36 - A currency option is a contract that gives the purchaser the right (but not the obligation) to buy or sell a currency at a predetermined price (exchange rate) sometime in the future.
Page 37 - ... ratio The current ratio is calculated by dividing current assets by current liabilities: current assets current ratio = The current ratio indicates the company's coverage of current liabilities by current assets.
Page vii - ... highlights just how serious the problem has become. Our rules — and most important the purposes beneath them — have grown in complexity to a point beyond understanding except by a small number of specialists. It was once remarked by Baron Rothschild that only two men really understood gold — an obscure clerk in the Bank of France and one of the directors of the Bank of England. Unfortunately, he noted, "they disagree...
Page 46 - ... due diligence an analysis carried out before buying a controlling interest in a company to determine that the conditions of the business conform with what has been said by the sellers.
Page 52 - Guaranty, the investment bankers, as a 'bond underwritten by an international syndicate and bonus issue, or scrip issue, capitalization issue sold in countries other than the country of the currency in which the issue is denominated'.
Page 45 - ... Singapore. It should also not be enjoying any tax relief under the Economic Expansion Incentives (Relief from Income Tax) Act. Dow Jones Industrial Average (DJIA) A share price index of shares traded on the New York Stock Exchange. The DJIA is a price-weighted average of 30 actively traded stocks. It is named after Charles Dow and Eddie Jones who first teamed up in 1882 to report stock market news in New York. Charles Dow was also the first editor of the Wall Street Journal. Down payment A portion...
Page 114 - ... longevity" of a security is its duration, not its term. Bonds with the same terms can have very different durations, depending on the pattern of the cash flows over the life of the bond. This requires a reinterpretation of the concept of the yield curve. As normally defined, the yield curve shows the relationship between the yield to maturity and the term to maturity. Yield curves are normally upward sloping because bonds with longer terms have greater interest rate risk. However, bonds with...
Page 60 - ... on a specific future date at an agreed price determined at the time the contract is traded on the futures exchange.