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Some Commonly Used Words In Investment

Discussion in 'Investments' started by Celestina Angel Serome, Jul 14, 2019.

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  1. Celestina Angel Serome

    Celestina Angel Serome Administrator Staff Member

    Investment has become one of the most dire requirements for the growth and expansion of any business or organization, because with the help of investment a lot of companies and small businesses out there have been able to make huge profits in the market zone.
    What is investment?
    Investment is a process or action of investing funds for profit. Investing is basically done by most businesse men out there, and it's no news that it's indeed beneficial, so as many that are out there who do not know much about investment and some commonly words used; here are some common words that are related to investment.


    Annuity
    an amount of money that is invested in order to earninterest that is then paid to someone each year for the rest of their life

    arbitrage


    the process of buying things, especially currencies or company shares, in one place and selling them in another at the same time for profit

    blue chip

    a company or investment that makes a lot of money and is safe to invest in

    bond

    business a document given to someone who invests money in a government or company, promising to pay back the money with interest.

    capital


    business money or property that you use to start a business or invest to earn more money

    capital gains tax

    a tax that you pay on the profit you get from sellingproperty or from money you have invested

    capital-intensive

    a capital-intensive business or activity needs to have a lot of money invested in it

    chit fund

    indian english a kind of savings scheme used in India. Each person pays in a certain amount every month over a period of time and a prize decided by auction is given each month.

    contrarian

    someone who invests money in the opposite way to most other people, for example buying shares in companies that are doing badly, because they think that the situation will change

    debenture

    an official arrangement with a company in which the company promises to pay a fixed rate of interest on money you have invested in it

    derivative

    a type of investment that will gain in value if the price of a product changes in an expected way

    disinvestment


    the act of taking money out of a particular country, industry, or business, and investing it somewhere else

    divestment

    the process of selling shares or assets or of taking back money that you have invested

    drawdown

    a reduction in the value of an investment

    equity capitaL

    money raised for a business by selling shares or by keeping some of the money earned by the business

    FDI

    foreign direct investment

    foreign direct investment

    investment made by a person or organization in one country into a business in another country

    friendly society

    an organization in the UK that saves money for people who give small amounts of money regularly

    fund

    a financial organization that manages an amount of money by investing it

    fund manager

    someone whose job is managing and investingmoney for a financial organization

    futures

    business contracts to buy or sell shares, goods, or currency at an agreed price to be delivered at a time in the future

    gilt-edged

    gilt-edged investments are considered to be very safe and reliable

    hedge fund


    a financial organization that invests money that has a high risk of being lost but which may make a very large profit

    investment

    business money used in a way that may earn you more money, for example money used for buying property or shares in a company

    investment

    an amount of money that is invested

    investment

    the process someoneding money in order to improvesomething or make it more successful

    investment

    something that you are willing to spend money on now because it will give you benefits in the future

    investment bank

    in the United States, a bank that buys and sells large quantities of securities (=documents showing that someone owns a small part of a company)

    investment trust

    a company whose business is investing the money that it receives from its customers

    investor

    a person or organization that invests money

    inward investment

    money that is invested in a country by a person or organization from another country

    junk bond

    a bond that pays a lot of interest but has a high level of risk

    limited liability

    the legal position of having to pay only a limited amount of the debts of a company that you have invested in

    margin

    an amount of money that you give a stockbroker to pay for possible losses on money that they invest for you

    mature

    if an investment matures, the person who owns it receives back the money that they invested and the interest that it has earned after a fixed period of time

    maturity
    the time when the interest and profits on money that has been invested must be paid

    OEIC

    Open Ended Investment Company: a company that invests its money in other companies and has no limit on the numbers of its own shares that it can make available for sale

    offshore

    relating to money invested in another country

    pay out


    to provide money from an amount invested over a period of time

    performance

    the degree of success of an investment makes in making money for you

    portfolio

    all the investments that a person or company has made

    private equity

    money invested in private companies whose shares cannot be bought on the stock exchange

    prospectus

    a document providing details about a business to people who are interested in investing in it

    pump-priming

    money that is invested in something to encourage it to develop, or to encourage other people to invest in it

    reinvest

    to invest income back into a business instead of taking it as profit

    return

    to produce a particular amount of profit on money that has been invested

    return

    a profit on money that you have invested

    rollover

    a situation in which the money earned from investing in something is invested again in a similarthing

    savings

    money that you have saved in a bank or invested so that you can use it later

    share

    one of the equal parts of a company that you can buy as a way of investing money

    short-selling

    the practice of selling borrowed securities and then buying them again at a lower price

    simple interest

    interest earned on money that you have invested, calculated once a year on the principal (=the amount of money originally invested)

    stake

    the part of a business that you own because you have invested money in it

    stakeholder

    a person or company that has invested in a business and owns part of it

    supply-side economics

    economic policies that involve reducing taxes in order to encourage people to invest more money

    tax shelter

    somewhere you can invest your money without having to pay tax on the profits



    tracker funD

    money invested in all of the companies on a particular list

    trust

    legal arrangement in which a person or an organization manages someone else’s money or property

    trust

    money or property that someone manages for a person or an organization according to a legal arrangement

    trust

    an organization that manages money or property so that it can help other people or organizations

    trust fund

    an amount of money invested and managed for someone, often a child, by another person or organization

    unearned income

    money that you get from something that you have invested in, for example property or shares

    venture capital


    money invested in a new business that may or may not be successful

    white knight

    a person or company that invests money in another company in order to prevent it being sold to a larger organization


    yield
    profit on money that you have invested.

    It is safe to say that anyone who is aqquinted to these terms is likely to have a well understanding transaction with their investors.
     
  2. Ebuka

    Ebuka Member

    My first time of knowing gilt-edged thanks. Informative thread.

    I want to ask, please what is the necessity needed to acquire Government safe to invest company to have investors in one company or business?
     
  3. serome

    serome Administrator Staff Member

    Nice one Angel. @Ebuka I think you will have to register your company with CAC. They are different types of company registration. I will share more highlight on this later. Quite busy now.

    You can create a new thread on this so others can as well help you out.
     

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