Useful information
Useful terms
Average scaled price – sum of all operations performed during one trade session, which is divided by the number of securities sold in these operations.
Bond – short-term (up to 12 months) security, which is sold by state, local government or company with discount (under its nominal value), but after the term has ended, investor re-ceives full nominal value.
Debt security – it confirms security issuer’s responsibilities regarding security owner and guarantees a periodic income at previously set rate to the security owner, as well it provides rights for the security owner to receive security nominal value after certain time period.
Dividend – net profit of the stock companies received by shareholder.
Emit – to issue securities.
Inflation - macro economical indicator that shows overall price growth and therefore reducing of purchasing capacity in certain time period. Inflation is one of the most important risks that can significantly affect deposits and their values in future. It is important to keep track of de-posit profits to secure that on regular and long-term bases it would exceed inflation.
Obligation or long-term debt security (investment for more than one year) – it is issued by state, local government or company and the owner of this obligation receives previously agreed profit for this loan.
Risk – an uncertain possibility for a future event to take place.
Risk diversification – placement of investments into several securities or other financial assets to ensure that in long-term individual security price oscillations would not significantly affect overall investment portfolio for each individual investor.
Security – a document, which verifies emitent’s (issuer’s) commitment regarding the owner of securities.
Stock – a security, which is issued (emitted) by company (emitent) in order to gain extra financial resources to provide further development or financing of new projects. For stock-owner it is reassurance that he owns possessive or capital share and he is a co-owner of the company, who has also rights to receive dividends and other profits that company may have.
