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.
Capital growth Occurs when the current value of an investment is greater than the initial amount invested.
Diversified/Diversification The practice of investing in a variety of assets. This is a risk management technique where, in a well-diversified portfolio, any loss from an individual holding should be offset by gains in other holdings, thereby lessening the impact on the overall portfolio.
Dividend Dividends represent a share in the profits of the company and are paid out to a company’s shareholders at set times of the year.
Equities Shares of ownership in a company.
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.
Yield This refers to either the interest received from a fixed income security or to the dividends received from a share. It is usually expressed as a percentage based on the investment's costs, its current market value or its face value. Dividends represent a share in the profits of the company and are paid out to a company’s shareholders at set times of the year.