Tag: stocks

Single-Country Fund definition explanation

What is Single-Country Fund?
A mutual fund that restricts its investment to the assets of one country and is able to allocate its funds only within the range of investment instruments available in the specified country. This restriction is based on the mutual fund prospectus. If the fund’s prospectus states that it is only investing in one country, the fund is bound by this statement.

Also known as a “”country fund””. Read more for examples and further explanation including related video clips and also comments
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Marketable Security definition explanation

What is Marketable Security?
Any equity or debt instrument that it readily salable and can be converted into cash, or exchanged with ease. Stocks, bonds, short-term commercial paper and certificates of deposit are all considered marketable securities because there is a public demand for them and because they can be readily converted into cash. Read more for examples and further explanation including related video clips and also comments
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Index Fund definition explanation

What is Index Fund?
A type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor’s 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover. Read more for examples and further explanation including related video clips and also comments
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Equity Capital Market – ECM definition explanation

What is Equity Capital Market – ECM?
A market that exists between companies and financial institutions that is used to raise equity capital for the companies. Some activities that companies operate in the equity capital markets include: overall marketing, distribution and allocation of new issues; initial public offerings, special warrants, and private placements. Along with stocks, the equity capital markets deal with derivative instruments such as futures, options and swaps. Read more for examples and further explanation including related video clips and also comments
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BRIC ETF definition explanation

What is BRIC ETF?
An exchange-traded fund that invests in stocks and listed securities associated with the countries of Brazil, Russia, India and China. BRIC ETFs are designed to give holders diversified exposure to these growing countries. Assets are invested in both locally issued stocks and shares that trade on exchanges in the U.S. and Europe. The portfolio allocation among the four counties may vary from fund to fund, but all ETFs in the space should be passively invested around an underlying index. Read more for examples and further explanation including related video clips and also comments
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Strong Sell definition explanation

What is Strong Sell?
A type of stock trading recommendation given by analysts for a stock that is expected to dramatically underperform compared to the average market return and/or return of comparable stocks in the same sector or industry. It is an emphatic negative comment on a stock’s prospects. Read more for examples and further explanation including related video clips and also comments
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Interest Rate Risk definition explanation

What is Interest Rate Risk?
The risk that an investment’s value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relationship. Such changes usually affect securities inversely and can be reduced by diversifying (investing in fixed-income securities with different durations) or hedging (e.g. through an interest rate swap). Read more for examples and further explanation including related video clips and also comments
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Capital Appreciation definition explanation

What is Capital Appreciation?
A rise in the value of an asset based on a rise in market price. Essentially, the capital that was invested in the security has increased in value, and the capital appreciation portion of the investment includes all of the market value exceeding the original investment or cost basis. Capital appreciation is one of the two main sources of investment returns, with the other being dividend or interest income. Read more for examples and further explanation including related video clips and also comments
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