Episode Investing Glossary

Term Definition
Asset Anything having commercial or exchange value that is owned by a business, institution or individual.
Bond A type of security, usually issued by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the initial investment is repaid.
Capital Refers to the financial assets, or resources, that a company has to fund its business operations.
Credit The borrowing capacity of an individual, company or government. More narrowly, the term is often used as a synonym for corporate bonds.
Developed nation Well-established economies with a high degree of industrialisation, standard of living and security.
Episode Occurs when asset prices move for non-fundamental reasons, or in the context of behavioural finance, when market prices may be driven by emotion more than rational analysis and an investment opportunity can therefore arise.
Equities Shares of ownership in a company.
Government bonds Bonds issued by governments.
Index An index represents a particular market or a portion of it, serving as a performance indicator for that market.
Monetary policy A central bank's regulation of money in circulation and interest rates.
Monetary tightening When central banks raise interest rates or sell securities on the open market to decrease the money in circulation.
Yields (bond) This refers to the interest received from a bond and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.