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Saturday, December 10, 2022

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share

A security representing a share in the capital of a public company. This owner assures membership rights (voting and election rights at the general meeting) and property rights (right to share in profits, share in capital growth or in the liquidation result).

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stock valuation

The main stock valuation metrics used in stock analysis are dividend yield, price-to-earnings ratio based on earnings per share, price-earnings-to-growth ratio, price-to-cash flow ratio, price-to-book ratio, and price – There are sales. ratio.

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stock split

Split of existing shares into shares of smaller face value. The share capital itself remains unchanged, only the number of shares increases. The purpose of a split is to make the title easier to trade. The opposite, i.e. combining several shares with a larger face value, is called a reverse split.

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beep

The added value of an economy. GDP growth is an important factor influencing corporate profits and interest rates, and thus indirectly for stocks and bonds.

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take part

Long-term, capital-related interests in other companies that have economic impact or similar objectives in the foreground. Holdings are valued most commonly at cost price.

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domestic market

A form of integration in which not only goods and services but also labor and capital, the factors of production, can be freely exchanged. Today’s European Union laid the foundation for the success of the European Single Market with the Single European Act in 1986.

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blue chips

Designation for shares in leading, listed companies with first class credit rating, high earning power and a solid financial structure.

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Gross Domestic Product

The added value of an economy. GDP growth is an important factor influencing corporate profits and interest rates, and thus indirectly for stocks and bonds.

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Share Market

Regular market organized according to certain customs. Someone speaks z on the basis of merchandise. B. From exchanges for securities, securities, foreign exchange, commodity exchanges or derivative instruments (futures exchanges).

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market value

The market value (market value) of a company. To do this, the market value is multiplied by the number of all shares. Relevant to free float share indices.

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cash flow

Ordinary cash flow resulting from a company’s operating activities. Extraordinary expenses and income should be excluded from cash flow calculations, as should excessive changes in the formation or release of hidden reserves.

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corporate governance

Rules and principles for good and responsible corporate governance. Increasing criticism of the quality of corporate governance has prompted trade associations and stock exchanges to develop regulations on transparency, governance and control. Since 2002, companies listed in the SIX have had to implement the Corporate Governance Directive. The revised guidelines came into force in early 2007.

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Diversity

Distribution of investment amount across multiple investment categories. Within a stock market, diversification leads to reduction of stock-specific risks and, with sufficiently wide diversification, ultimately to afford only systematic risk.

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Dividend

Percentage of earnings paid by the corporation per share. The dividend is determined by the general meeting at the request of the board of directors. The payment to the holders of Profit Participation Certificate is also known as dividend.

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dividend policy

The specification as defined by the Board of Directors, according to which the dividend distribution is based. Between 25 and 40% of the profit (Profit Distribution Ratio) may need to be paid as dividend (which is common today). However, the board of directors can always aim to pay a dividend, ie in economic cycles – then in very good years it will reduce the dividend to provide money for distribution in bad times. Income-based and fixed (or a hybrid) are the most common types of dividend policies. However, there are also companies that do not pay dividends. This is the case, for example, when a company is growing rapidly and immediately invests profits in further expansion.

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dividend yield

Return on Share Investment Expressed as a Percentage: The dividend yield represents the dividends paid out in a year as a percentage of the value. In practice, the expected dividend yield is relevant, but not guaranteed, as a selection criterion.

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ETFs

ETFs are investment funds that are listed and permanently traded on a stock exchange like stocks. Most of the ETFs launched to date are index funds that aim to replicate a specific industry or country index (usually equities).

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share capital

The share of the total capital owned by the shareholders and paid to them in the event of a going concern. From the shareholders’ point of view, the most important function of a company is to generate a return on equity that is commensurate with the risk (cf. bank equity).

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Dividend

Profit expressed as a percentage of equity. RoE is a commonly used but not very meaningful metric because it is heavily dependent on accounting effects such as the method used to amortize goodwill.

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exchange traded funds

ETFs are investment funds that are listed and permanently traded on a stock exchange like stocks. Most of the ETFs launched to date are index funds that aim to replicate a specific industry or country index (usually equities).

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fonds

An asset raised by investors through public advertising for the purpose of collective capital investment, which is generally managed by a fund management company according to the principle of diversification for the investors’ account. Investment funds are purchased directly from the bank and increasingly also through internet platforms and, unlike ETFs, are generally not traded on a stock exchange.

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GV

Apex body of AG. Extraordinary general meetings can also be called in addition to the regular annual meeting of shareholders.

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Monetary policy

Measures with which central banks control interest rates on the money market (prime interest rates) and thus the money supply of a country or currency region. The goal of most central banks, including the Swiss National Bank, is to keep prices stable (cf. inflation, deflation) and allow the economy to grow (cf. quantitative easing).

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industrialized countries

It is itself an old term for highly developed countries, where today the service sector is dominant. Industrialized countries are united in the OECD.

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inflation

appreciation or currency depreciation. The change is given as the inflation rate. This often causes central banks to adopt a restrictive monetary policy (high prime interest rate), which weighs in on stocks and bonds. Opposite: deflation, deflation.

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PE

Share price in relation to earned or expected earnings per dividend-bearing share. The stock valuation ratio indicates how often earnings per share is included in the stock price. P/E can be used to compare different stocks within an industry.

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consumer prices

The price evolution of the most important goods and services for everyday life in private homes, from petrol to apartment rents to cinema tickets (but without health insurance premiums), were recorded monthly in the National Index of Consumer Prices. The goal of the SNB’s definition of price stability.

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price earnings ratio

Share price in relation to earned or expected earnings per dividend-bearing share. The stock valuation ratio indicates how often earnings per share is included in the stock price. P/E can be used to compare different stocks within an industry.

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corner

1. The difference between a bank’s lending and lending rates (interest margin). 2. The difference between the bid price and the security’s ask price (the bid-offer spread). 3. Cash Margin (Initial Margin, Variation Margin) in Futures or CDF (Safety Margin). 4. Earnings in respect of sales (usually current) (Return on Sales, ROS).

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Central bank

The economic institution that is responsible for supplying the economy with money. At the same time, it must be built on the basis of monetary stability and law, full employment and suitable economic growth. In Switzerland, it is SNB.

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performance

1. Evolution of the price of a security. 2. Portfolio performance, usually expressed as a percentage, including distributions (reinvestment). 3. The investment policy performance of the management of the investment fund, investment company, hedge fund or pension fund with a view to the investment goal.

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risk

In financial market theory, investment risk is measured by fluctuations in earnings. Theoretically, risk and return are directly related: the higher the risk taken, the higher the return on investment should be over the long term (cf.

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growth stock

Shares of companies that are said to have above-average earning power (such as those in high-tech sectors). Accordingly, growth stocks tend to have higher price-earnings ratios (cf. value stocks).

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interest structure curve

Represents the current return (return to maturity) of interest-bearing investments of different maturities and of similar quality. Because market expectations are embedded in current returns, the yield curve reflects a consensus investor forecast. Examples are the Confederation Yield Curve and the Swap Rate Curve.

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