Glossary

Term Definition
Asset Anything having commercial or exchange value that is owned by a business, institution or individual.
Capital Refers to the financial assets, or resources, that a company has to fund its business operations.
Emerging economy or market Economies in the process of rapid growth and increasing industrialisation. Investments in emerging markets are generally considered to be riskier than those in developed markets.
Equities Shares of ownership in a company.
Overweight If a fund is ‘overweight’ a stock, it holds a larger proportion of that stock than the comparable index or sector.
Price-earnings ratio / P/E ratio A measure that compares a company's current share price to its earnings per share. It provides a guide to the market's opinion about the company's future earnings prospects. Calculated by dividing the market value per share by the earnings per share.
Risk The chance that an investment's return will be different to what is expected. Risk includes the possibility of losing some or all of the original investment.
Security Financial term for a paper asset – usually a share in a company or a fixed income security also known as a bond.
Valuation metrics Measures used for determining the current worth of an asset or company.