THOUGHT OF THE WEEK
INVESTMENT JARGONS (PART 1)
1. Annual report - The yearly audited record of a corporation or a mutual fund's condition and performance that is distributed to shareholders.
2. Annualized rate of return - The average annual return over a period of years, taking into account the effect of compounding. Annualized rate of return also can be called compound growth rate.
3. Appreciation - The increase in value of a financial asset.
4. Asset allocation - The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs.
5. Asset class - Securities with similar features. The most common asset classes are stocks and bonds.
6. Balanced fund - Mutual funds that seek both growth and income in a portfolio with a mix of stock or bonds.
7. Bear market - A bear market is a prolonged period of falling stock prices. The opposite of a bull market.
8. Benchmark - A standard, usually an unmanaged index, used for comparative purposes in assessing performance of a portfolio or mutual fund.
9. Blue chip - A high-quality, relatively low-risk investment; the term usually refers to stocks of large, well-established companies that have performed well over a long period. The term Blue Chip is borrowed from poker, where the blue chips are the most valuable.
10. Bond - A bond acts like a loan or an IOU that is issued by a corporation or government. The issuer promises to repay the full amount of the loan onna specific date and pay a specified rate of return for the use of the money to the investor at specific time intervals…….(TO BE CONTINUED)
Ghana | Week Ending March 18, 2022
This weekly report is the copyright of NIMED Capital Ltd. (NIMED), an investment banking company licensed and regulated by the Securities and Exchange Commission (S.E.C.) of Ghana as Investment Advisers as well as the National Pensions Regulatory Authority (N.P.R.A.) as an approved Pension Fund Manager. Information and opinions herein have been compiled or arrived at based on information obtained from sources considered reliable; we therefore do not hold ourselves responsible for its completeness or accuracy. All statements of opinion, projections, forecasts, or those relating to expectations regarding future events or performance of investments represent NIMED’s own assessment and interpretation of information currently available to NIMED, which are subject to change.