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.
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.
Index An index represents a particular market or a portion of it, serving as a performance indicator for that market.
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.
Valuation The worth of an asset or company based on its current price.
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.