Term Definition
Asset Anything having commercial or exchange value that is owned by a business, institution or individual.
Bond A loan in the form of a 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 amount borrowed is repaid.
Bottom-up stockpicker Selecting stocks based on the attractiveness of a company.
Capitalisation The total market value of all of a company's outstanding shares.
Emerging economy or 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.
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'.
Quantitative easing Often perceived as printing money, quantitative easing is a monetary policy tool used to stimulate money supply within the economy by easing pressure on banks and enhancing their liquidity. The Bank of Japan used quantitative easing in 2001 in an attempt to fight deflation.
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.