Outlook for Investment Markets - 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.
Corporate bonds Fixed income securities issued by a company. They are also known as bonds and can offer higher interest payments than bonds issued by governments as they are often considered more risky.
Developed market Well-established economies with a high degree of industrialisation, standard of living and security.
Emerging 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/Equity Shares of ownership in a company.
Government Bonds Fixed income securities issued by governments, that normally pay a fixed rate of interest over a given time period, at the end of which the initial investment  is repaid.
Inflation  The rate of increase in the cost of living. Inflation is usually quoted as an annual percentage, comparing the average price this month with the same month a year earlier.
Macro/Macroeconomic  Refers to the performance and behaviour of an economy at the regional or national level. Macroeconomic factors such as economic output, unemployment, inflation and investment are key indicators of economic performance. Sometimes abbreviated to 'macro'. 
Monetary policy A central bank's regulation of money in circulation and interest rates.
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.