Term Definition
Capital Refers to the financial assets, or resources, that a company has to fund its business operations.
Capitalisation The total market value of all of a company's outstanding shares.
Exposure The proportion of a fund invested in a particular share/fixed income security, sector/region, usually expressed as a percentage of the overall portfolio.
Liquidity/liquid A company is considered highly liquid if it has plenty of cash at its disposal. A company's shares are considered highly liquid if they can be easily bought or sold since large amounts are regularly traded.
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.