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ASX: Australian Securities exchange operates the Australian stock exchange, provides market data, announcements and market education.

Bearish: A subjective view that there will be a down trend from a weak market also called a bear market

Bullish: A subjective view that there will be a rise in trend from a strong market also called a bull market.

Capital Gain: Profit made on the sale of an asset that exceeds the initial investment or capital. Taxes may be payable on capital gain.

Capital Loss: Loss made on the sale of an asset that the initial investment or capital exceeded the sale price. A Tax rebate may apply.

Capital: Money invested into a business usually a start-up business, high risk and high reward, success is uncertain.

CFD: Contract For Difference is contracts between two parties the buyer and the seller that states the seller will pay the buyer the difference between the current value of the asset and the value at the time of the contract. Remember if negative the buyer pays the seller the difference.

Commodities: A raw material or product, something valuable or useful that can be bought and sold.

Dividends: A dividend is an amount of money which is paid to the share holders from the company’s after-tax earnings. This payment may be offered as cash or on a DRP (dividend reinvestment plan).

DRP: A dividend reinvestment plan is how some company’s offer to pay its share holders dividends. The company allows you to automatically reinvest your dividends each quarter into additional shares without incurring brokerage fees, sometimes at a reduced price.

Ex-dividend: To be entitled to the dividend you must purchase the stock before it goes ex-dividend, if bought after this date you will not be entitled to the dividend for that quarter.

Long selling: Most commonly used, purchasing a stock to make a profit in a rising market.

Option: A contract between the buyer and the seller which allows the buyer to purchase a particular asset at a later date and an agreed price on or before the expiration date without any obligation.

Public Company: A company that has listed shares on a stock exchange for the public to invest in the company. These shares can be bought and sold freely by the public.

Shares: Part ownership position in a company normally comes with voting privileges about the company’s direction, directors, and share a profit or loss at the end of each quarter.

Short Selling: Going short is an investor selling a stock that they do not own and buying it back later, this strategy is used so an investor can profit in a declining market.

Stop Loss: An order to sell a stock automatically when the price falls to a certain point. This limits the investor’s from further losses.

Trailing Stop: An order to sell a stock automatically unlike a stop loss it follows the price upwards until a down trend takes over the trailing stop is triggered and the stock is sold.

Volume: A share’s volume is the amount of contracts or shares traded in a given period of time, usually measured daily and compared against the daily average volume.

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