Financial markets
Here's a detailed list of vocabulary related to financial markets for the IELTS band score 4.5-6.0:
-
Stock Market:
-
A marketplace where shares of publicly traded companies are bought and sold.
-
-
Bond Market:
-
A market for buying and selling bonds, which are debt securities issued by governments or corporations.
-
-
Foreign Exchange Market (Forex):
-
A global decentralized or over-the-counter market for trading currencies.
-
-
Commodity Market:
-
A market for trading raw materials or primary agricultural products.
-
-
Derivatives Market:
-
A market for financial instruments derived from underlying assets, such as options and futures contracts.
-
-
Equity Market:
-
Another term for the stock market, where ownership interests in companies are traded.
-
-
Capital Market:
-
A financial market for long-term debt and equity securities.
-
-
Money Market:
-
A market for short-term borrowing and lending of funds, typically with maturities of one year or less.
-
-
Primary Market:
-
The market where newly issued securities are sold for the first time.
-
-
Secondary Market:
-
The market where existing securities are bought and sold among investors.
-
-
Exchange-Traded Fund (ETF):
-
A type of investment fund that trades on stock exchanges, representing a basket of assets.
-
-
Mutual Fund:
-
An investment fund that pools money from multiple investors to invest in a diversified portfolio of securities.
-
-
Index Fund:
-
A type of mutual fund or ETF that aims to replicate the performance of a specific market index.
-
-
Hedge Fund:
-
A private investment fund that uses various strategies to maximize returns for its investors.
-
-
Portfolio:
-
A collection of financial assets, such as stocks, bonds, and cash, held by an individual or institution.
-
-
Volatility:
-
The degree of variation or fluctuation in the price of a financial instrument or market.
-
-
Liquidity:
-
The ease with which an asset can be bought or sold without causing significant price movements.
-
-
Bear Market:
-
A market characterized by declining prices and pessimism among investors.
-
-
Bull Market:
-
A market characterized by rising prices and optimism among investors.
-
-
Market Capitalization:
-
The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares.
-
-
Short Selling:
-
The practice of selling borrowed securities in the hope of buying them back at a lower price.
-
-
Dividend:
-
A payment made by a corporation to its shareholders, usually from its profits.
-
-
Initial Public Offering (IPO):
-
The first sale of a company's stock to the public.
-
-
Securities:
-
Financial instruments representing ownership in a company or the right to receive future cash flows.
-
-
Arbitrage:
-
The practice of taking advantage of price differences in different markets to make a profit.
-
-
Risk Management:
-
The process of identifying, assessing, and mitigating potential risks in financial transactions.
-
-
Market Sentiment:
-
The overall attitude or feeling of investors towards a particular market or security.
-
-
Market Order:
-
An order to buy or sell a security at the best available price in the market.
-
-
Limit Order:
-
An order to buy or sell a security at a specified price or better.
-
-
Margin Trading:
-
Trading with borrowed funds to increase the potential return on investment.
-
-
Rally:
-
A rapid increase in the price or value of a financial market or security.
-
-
Correction:
-
A temporary reversal in the price trend of a financial market, typically a decline of 10% or more.
-
-
Diversification:
-
Spreading investments across various assets to reduce risk.
-
-
Volatility Index (VIX): '
-
A popular measure of market volatility often referred to as the "fear index."
-
-
Leverage:
-
The use of borrowed money to increase the potential return on an investment.
-
-
Market Maker:
-
A firm or individual that provides liquidity to a market by buying and selling securities.
-
-
Securities Exchange Commission (SEC)
-
: A regulatory agency that oversees and enforces securities laws in the United States.
-
-
P/E Ratio:
-
Price-to-earnings ratio, a valuation ratio of a company's current share price relative to its earnings per share.
-
-
Dividend Yield:
-
The annual dividend income of a security relative to its current market price.
-
-
Market Analysis:
-
The study of market trends and data to make informed investment decisions.
-
Understanding these financial market terms will not only improve your vocabulary but also help you comprehend financial news and concepts during the IELTS exam. Good luck with your studies!
Comments: