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Glossary
Terms commonly used by sharemarket professionals.
Share Market Terms
Sharemarket terms
All Ordinaries (All Ords)
Measures the level of share prices at any given time for a sample of major companies listed on ASX to determine the overall performance of the share market.
Annual Report
The annual report is a financial report or statement issued by a publicly listed company to its shareholders. The annual report contains profit and loss statements, balance sheet and a statement of cash flow, notice of the Annual General Meeting (AGM) and business resolutions to be discussed.
ASIC
Australian Securities and Investments Commission (ASIC), is the government body responsible for regulating companies, the issue and sale of shares and trust units and company borrowings and investment advisers and dealers, in accordance with the Corporations Act.
ASX
Australian Securities Exchange (ASX) operates the stock market in Australia.
At limit
An order that places a limit on either the highest price that may be paid for shares, or the lowest price that may be accepted for sale.
At market
Type of order by an investor to buy or sell shares at the market price at the time the order is given. Like ‘at best’ which is an order to buy or sell at a price to be determined at the adviser’s discretion.
Bear Market
A bear market is when a market experiences prolonged price declines.
Bid
The price at which someone is prepared to buy shares.
Blue Chip
Shares, usually highly valued, in a major company known for its ability to make profits in good times or in bad, and with reduced risk or default.
Bonus Shares/Bonus Issue
Additional shares issued by the company to existing shareholders for free, usually in a predetermined ratio to the number of shares already held.
Brokerage
Fee paid to a stockbroking firm for buying or selling shares.
Bull Market
A bull market is a financial market in which prices are rising or are expected to rise.
Business Cycle
Also known as the economic cycle. The rise and fall of the economy, from a peak, or boom, to a trough (sometimes called a depression) and back to peak.
Capital
Funding for investment in capital assets or to operate a business. It also refers to the value of an investment in a business, or in assets such as property or shares.
CGT - Capital Gains Tax
Tax on the profit from the sale of capital assets, such as shares.
CHESS
ASX’s Clearing House Electronic Sub-Register System (CHESS) provides the central register for electronic transfer of share ownership.
Contract Note
A written document confirming a transaction between two dealers or a broker and a client which details the costs, type and quantity of shares traded.
Contributing Share
Shares that are not fully paid.
Cum Dividend
Cum means ‘with’. Shares quoted cum dividend entitle the buyer to the current dividend. The price of the shares will usually reflect the amount of the dividend.
Diversified Portfolio
A portfolio that holds a variety of assets over more than one asset class or one market. This may include shares, property, or fixed interest.
Dividend
Distribution of part of a company’s net profit to shareholders. Usually expressed as several cents per share.
Dividend imputation
The tax credits are passed on to a shareholder who receives a frank dividend. Under provisions of the Income Tax Assessment Act, imputation credits entitle investors to a rebate for tax already paid by an Australian company.
DRP - Dividend Reinvestment Plan
An alternative to cash dividends, allowing shareholders to receive new shares instead of cash. These shares are often issued at a discount and no brokerage or stamp duty is paid.
Dividend Rate
The dividend is shown as cents per share. This figure may be followed by "f" which means fully franked or "p" which means it has been partly franked.
Dividend Yield
The dividend is shown as a percentage of the last sale price for the shares.
Equities
In share market terms, 'equities' is a synonym for shares and represents part-ownership of a company, as distinct from debt securities such as bonds and debentures.
ETOs - Exchange Traded Options
Options which are bought and sold on the options market operated by ASX Derivatives. These options are based on selected underlying shares and come with either rights and or obligations to purchase or sell the number of shares specified by the options contract.
Ex Dividend
Shares are quoted ‘ex dividend’ four business days before the company’s Record Date. To be entitled to a dividend a shareholder must have purchased shares before the ex-dividend date.
Face Value
The amount at which securities are issued.
Float
The initial raising of capital by public subscription to securities, such as shares offered on the share market for the first time.
Franked Dividend
A dividend paid by a company out of profits on which the company has already paid tax. The investor is entitled to an imputation credit, or reduction in the amount of income tax that must be paid, up to the amount of tax already paid by the company.
GST - Goods and Services Tax
GST means the goods and services tax system under the A New Tax System (Goods and Services tax) Act 1999 (Cth) and related legislation passed by the Federal Government.
HIN
A Holder Identification Number (HIN) is allocated by your stockbroking firm when you buy shares if you nominate them as your sponsor in CHESS.
IPO
Stands for Initial Public Offer (see Float).
Liquidity
Being able to convert assets into cash easily, quickly and with little or no loss of capital. A liquid market is a market with enough participants to make buying and selling easy.
Listed Company
A company which has agreed to abide by ASX Listing Rules so that its shares can be bought and sold on the ASX.
Market Capitalisation
The total number of shares on issue multiplied by their market price. This can be applied to work out the market value of one company or of the value of all companies listed on the exchange.
Market Price
The prevailing price of shares traded on the ASX. May be the last price at which the shares traded, or the most recent price offered or bid for the shares.
NTA - Net Tangible Assets
An indication of what each share in a company is worth if all the assets were liquidated, all the debts were paid and the residual was distributed to the ordinary shareholders on a per share basis.
Offer
The price at which someone is prepared to sell shares.
Off-market transfer
The transfer of shares between parties without using a stockbroking firm as the intermediary. Off-market transfers are executed using an ‘Australian Standard Transfer Form’.
Options (Company)
The right, but not the obligation, to take up certain shares on specified terms at a specified time.
Preference Shares
Shares that rank before ordinary shares in the event of liquidation of the issuing company and that usually receive a fixed rate of return.
Price-earnings ratio
Shows the number of times the price covers the earnings per share.
Prospectus
The document issued by a company or fund setting out the terms of its public equity issue or debt raising provides the background, financial and management status of the company or fund, subject to the requirements of the ASX Listing Rules and the Corporations Law.
RSI - Relative Strength Indicator
RSI is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of the rate of the rise or fall in price.
Reweighting
This means changing the weight or percentage of the total portfolio which each investment represents. For example, an investor may invest their money equally in shares in four different companies and the price of one share rises significantly, the value of that share becomes much more than one quarter of the value of the whole portfolio. The investor may choose to ‘reweight’ their portfolio.
Rights Issue
A privilege granted to shareholders to buy new shares in the same company, usually below the prevailing market price.
SEATS
This is the Security Exchange’s Automated Trading System provided for the trading of Securities on ASX.
Securities
A general term applied to all shares, debentures, notes, bills, government and semi-government bonds etc.
SRN
A Security-holder Reference Number is allocated to you when you buy shares in a company and nominate that company as your sponsor on a share sub register.
Stochastic Indicator
The term stochastic refers to the location of a current price in relation to its price range over a period. This indicator attempts to predict price turning points by comparing the closing price of a security to its price range.
Underwriter
An underwriter guarantees to the company that the funds sought will be raised and any shortfall will be taken up by the underwriter. The funds will be available at a specific time.
Warrants
A warrant is a financial instrument issued by a bank or other financial institutions, which is traded on the Australian Stock Exchange’s equity market. Warrants may be issued over securities such as shares in a company, a currency, an index or a commodity.
Yield
The total income earned from an investment is normally expressed as a percentage.
Source
Australian Securities Exchange (ASX) and Morgans.
Fixed Interest terms
Accrued interest
The amount of interest that has been accumulated from the last coupon payment date to the date when a bond is bought or sold.
Accumulation index
An index of movements in a market which considers both capital movements in prices and the effect of income received.
Active management
An approach to managing investments which aims to achieve returns above a set benchmark. Decisions about asset allocation and stock selection within the portfolio are reviewed. See also Passive Management.
Active return
The difference between the return achieved by an investment manager, and the return to the fund's established benchmark.
ADI - Authorised Deposit taking Institution
Authorised Deposit-taking Institution. ADI's are regulated by APRA.
AFMA
Australian Financial Markets Association. AFMA is the national industry body representing the nearly 200 organisations who participate in the Australian over the counter (OTC) wholesale financial markets.
Agency issues - Agencies
Bonds on issue used to fund mortgage financing agencies set up by US statute or subject to implicit or explicit US Government support. Agencies provide home finance to the public but focus on specific socio-economic groups.
American Option
An option can be exercised by the owner (buyer) at any time throughout its life.
Annualised rate
The actual interest rate per annum adjusted for the compound effect of interest paid quarterly or semi-annually
Annuity
A series of fixed-amount payments paid at regular intervals over the specified period of the annuity.
AOFM
The Australian Office of Financial Management is an agency within the Commonwealth Treasury responsible for the Commonwealth of Australia's debt management activities.
APRA
Australian Prudential Regulatory Authority. APRA is the prudential regulator of banks, insurance companies and superannuation funds, credit unions, building societies and friendly societies.
Asset allocation
The split of assets within an investment portfolio among asset categories such as fixed interest, equites, cash and property. Typically, such allocation is made with a view to balance risk and create diversification.
Austraclear
An electronic system for the settlement of money market securities, as well as Commonwealth, Semi-Government and Corporate Bonds.
Authorised investment
Any authorised investments referred to under the Trust Deed in which any Fund may invest.
Bank bill
A bill of exchange that has been accepted or endorsed by a bank. Liability for repayment at maturity rests with the bank which accepted the bill.
Basis Point
One one hundred of a percent or 0.01%.
BBSW
Bank Bill Swap Reference Rate. Is a daily calculation of the yields on bank bills of 1, 2, 3, 4, 5, and 6 month maturities. It is calculated as at 10 a.m. each day with reference rates used for the setting of financial arrangements.
Bear market
A market in which yields are rising (prices falling).
Benchmark
A standard used for comparison. These are market recognised indicators such as the UBS Warburg Composite Bond Index which measures the price movement of selected securities which comprise the Australian bond market. Benchmarks are used as a measure of comparing a portfolio's return against a similar portfolio of securities.
BoE
Bank of England
BoJ
Bank of Japan
Bull market
A market in which yields are falling (prices rising).
Bid/Offer spread
The difference in basis points between a security’s buy and sell yield (or price). Fixed interest market makers use this to pay for the provision of liquidity to a market as opposed to separate brokerage as is in the case of equity markets.
Capital gain
Profit from the sale of capital assets such as bonds. Investors often buy securities for expected the increase in value rather than for coupon income.
Capital guaranteed
A guarantee to return to you at least the amount invested.
Capital Notes
Very similar to unsecured debentures. They pay a fixed unfranked rate of interest, may exist for many years and are redeemed at face value at the end of that period.
Capital price
Gross price less accrued interest. Also known as clean price.
Cash Management Trust
Unit trust in which the manager of the trust invests the pooled investor funds primarily in a range of short-term securities including Treasury notes, bank bills and selected commercial bills. Because these investments are usually for periods of between 90 and 180 days (securities which can easily be resold if required) it means that there is a pool of cash always available for those investors who wish to withdraw their funds at short notice. As there are generally minimal fixed long-term investments, the return received may vary daily.
Cash rate
The interest rate which financial institutions pay to borrow or charge to lend funds in the money market on an overnight basis. The RBA uses a narrower definition of the cash rate as an operational target for the implementation of monetary policy.
CGS
Commonwealth Government Securities. Includes all securities issued by the AOFM on behalf of the Commonwealth Government, comprising Treasury bonds, Treasury notes, Treasury indexed bonds and, previously, Treasury adjustable-rate bonds. These securities are issued by multi-price tender.
Clean price
See Capital Price.
Contract note
Formal confirmation of the details of a transaction done between you and your adviser.
Convertible note
A loan made to a company at a fixed rate of interest with the right to be either redeemed for cash or converted into ordinary shares at a predetermined date or within a certain period.
Corporate bonds
A fixed interest security where the borrower is a company rather than a Government or Semi-Government Authority. Generally considered to be riskier than Government issued debt, therefore attracting a higher yield.
Counterparty
Party with which a trade is done.
Coupon
The interest rate paid on the specified date to an investor in a bond. Coupons can be paid monthly, quarterly, semi-annually or annually. Most bonds pay a semi-annual coupon (i.e. twice a year).
Coupon date
The date on which a coupon is paid to bond investor.
Coupon margin (or issue margin)
The spread above the variable rate (BBSW) on a floating rate instrument. If a FRN pays the 3-month bank bill + 0.50% each quarter, then 0.50% (or 50 basis points) is the coupon margin.
CPI
Consumer Price Index, official government measure of inflation published by the Australian Bureau of Statistics.
CPI Bond
A bond where the coupon payment or the principal amount is adjusted in line with the CPI. Also known as indexed linked bonds.
Cum interest
A security is cum interest if its price includes the next due interest payment.
Credit risk
The possibility that a borrower will fail to pay the principal amount and/or interest on a debt instrument promptly. Typically the higher the perceived credit risk, the higher the yield or interest rate spread to like maturity securities.
Debenture
A loan made to a company for a fixed period of time at a fixed rate of interest. The loan is not secured by a charge over the company's assets, but rather is backed by the credit status of the borrower. Debentures are not considered liquid or tradeable securities.
Derivatives
These are financial instruments such as interest rate futures, swaps and options, whose value is "derived" from underlying physical assets. Derivatives are used:
- To offset the risk of price variations of securities
- As an alternative to purchasing/selling the physical security
- To benefit from any opportunities for profit which may exist in the market from time to time
Discount
When the capital price of a bond is less than its face value it is said to trade "at a discount". This will occur when the security's current yield is trading above its coupon.
Discount security
A security that is issued and traded at a discount to face value. Discount securities make only one payment the face value, on the maturity date and include Treasury Notes, Bank Bills and Promissory Notes. The difference between what is paid for the security at purchase and face value is the interest component.
Diversification
The act of spreading investments, that is not putting all your eggs in the one basket. A diversified portfolio has a spread of securities across various assets and asset classes in such a way that attempts to control the risk and the variability of returns.
Dividend
Distribution of part of a company's after-tax profit to shareholders by way of cash or as additional shares in the company.
Duration
A technical measure of the length of maturity of a fixed interest security. The longer the duration of a security, the more sensitive its price is to changes in yield.
ECB
European Central Bank.
Effective exposure
The total economic (or underlying) exposure to a market generated by the use of derivatives.
Emerging markets
The financial markets of developing economies. Returns are potentially high relative to more mature economies, but are subject to a higher degree of risk and volatility.
European option
Option which can be exercised by the owner (buyer) only at expiry.
Ex-Interest
A security is ex-interest if it excludes the next due interest payment. If you purchase a bond ex-interest (thus close to an interest payment date) the seller will receive the entire next due coupon and the price paid is adjusted accordingly.
Exchange traded
A security traded on an exchange.
Fixed Interest Security
A debt security where the coupon is generally fixed and where the capital value is known if the asset is held to maturity. Securities are issued by Government and corporate borrowers.
FOMC
Federal Open Market Committee, the body responsible for setting monetary policy in the United States. The FOMC chairman is Alan Greenspan.
FRA
Forward Rate Agreement. Is a derivative used for managing cash flow and risk in financial markets.
Franked dividend
A dividend which carries the right to an imputation (tax) credit, arising because of the difference between the rate of company tax paid and the investor's marginal tax-rate. The declaration (by the company) of the right to an imputation credit attaching to dividends is known as franking. Has relevance to hybrid type securities that exhibit interest rate characteristics when considering the total return of the investment.
FRN
Floating Rate Note, a security with a yield that is reset periodically (typically every 90 days). The yield is set with reference to BBSW.
Fund
A Trust individually constituted under or governed by the Trust Deed.
GDP
Gross Domestic Product. A measure of the total value of goods and services produced in an economy in a period (usually a quarter or a year).
Government bond
A debt security issued domestically by the Commonwealth of Australia, or internationally by the central government of a sovereign nation.
Gross price
The total price an investor pays when buying a bond. Gross price = capital price + accrued interest. Also known as dirty price.
Hedging
An investment made in order to reduce the risk of adverse price movements in a security, by taking an offsetting position in a related security or instrument, such as an option or futures contract.
Investment grade
The description used by ratings agencies for securities such as bonds and notes that are of sufficient quality to be classed as sound investments. For example, Standard & Poor's consider their top four long term categories, AAA to BBB, to qualify as investment grade. The equivalent long term categories from Moodys are Aaa to Baa3.
Issue margin
Or coupon margin is the spread above the variable rate (BBSW) paid on a floating rate instrument. If a FRN pays the 3 month bank bill + 0.50% each quarter then 0.50% (or 50 basis points) is the issue margin.
Liquidity
The ease with which an asset can be converted into cash without any significant price discount. For example, cash is considered to be the most liquid asset, followed by bonds which are considered more liquid than equities.
Listed Securities
Securities that are approved for admission to trading on the Stock Exchange.
Market timing
Referred to commonly as buying when yields are high (prices low) and selling when they are low (prices high). Market and economic factors are taken into account when considering the best time to invest.
Maturity date
The date on which the face value and the final coupon payment will be repaid to the investor.
Modified Duration
The percentage change in price (or market value of a security) for a one percent change in yield from current levels.
Monetary policy
Measures adopted by a Central Bank to influence the economy. In Australia, the Reserve Bank is responsible for monetary policy. It has a target inflation range of 2-3%, and therefore adjusts interest rates so as to achieve sustainable level of growth in the economy without endangering this target band through the business cycle.
Money market
The securities market dealing in short-term debt and monetary instruments. Money market instruments are forms of debt that mature in less than one year and are generally very liquid.
MBS
Mortgage Backed Securities are securities whose value is derived from an underlying pool of residential mortgages. The mortgages are pooled and secured against the issue of bonds. The bonds are known as MBS.
NCD
Negotiable certificate of deposit. Debt instrument issued by a bank in its own name for funding purposes.
OECD
Organisation for Economic Co-operation and Development.
Option
An instrument which conveys the right, but not the obligation, to the buyer to buy (call option) or sell (put option) a certain security on specified terms within or at a specified time. The seller of the option position has the obligation to satisfy the buyers right.
Over the counter
A security that is not traded on an exchange such as Sydney Futures Exchange but transacted over the phone between professional investors and brokers.
Overnight Cash (11am)
Wholesale cash deposit made with a bank, with the rate renegotiated each day by 11am.
Par
A bond at par is one whose market value is the same as its face value (i.e. price = 100.000).
Passive management
An approach to managing investments whereby the composition of a market segment or index is mirrored in order to achieve a similar return and risk profile. See also Active Management.
Perpetual income securities
Interest rate securities which pay an annual interest rate, but have an infinite life (i.e. no redemption). The interest rate may be fixed forever, or periodically reset (eg every 90 days).
Preference shares
Securities issued by a company that rank above ordinary shares for claims on assets, earnings and dividends but rank below creditors and debenture holders. These shares usually have a fixed dividend rate.
Premium
When a bond's price exceeds 100.000 (face value) it is said to be trading "at a premium". This will occur when the securitys current yield is trading below its coupon.
Price index
An index of movements in a market which considers only the movement in prices.
Primary market
The new issue market.
Promissory note
An unconditional promise to pay to the holder of the note a fixed amount (face value) at a fixed date (maturity date). Defined more fully in the Bills of Exchange act as: "an unconditional promise in writing by one person to another, signed by the maker, engaging to pay on demand or at a fixed or determinable future time a sum certain in money for or to the order of a special person or to bearer".
Property trust
Trust established to allow investors to pool their funds and invest in large properties (eg. shopping centres). Securities are often analysed or traded on the income yield they are expected to pay to investors.
Purchase price
The dollar amount paid for bonds (gross price to 3 decimal places multiplied by units in lots of 10,000). If a bonds price equals 102.120 and its face value equals $500,000, the purchase price equals $510,600.
Rally
A fall in yields (rise in price).
Rated securities/investments
Securities that have been assigned a credit rating by a recognised rating service indicating the likelihood that a debt issuer will be able to meet scheduled interest and principal repayments.
RBA
Reserve Bank of Australia.
RTGS
Real-time gross settlement. A payment system used in wholesale markets in which processing and settlement of securities takes place in real time (continuously) as opposed to at end-of-day.
Repurchase agreement
The mechanism by which most Reserve Bank of Australia (RBA) domestic market operations are conducted. Repurchase agreements (usually called 'repos') involve the sale or purchase of securities with an undertaking to reverse the transaction at an agreed date in the future and at an agreed price. Repos provide flexibility in that they allow the RBA to inject liquidity on one day and withdraw it on another with a single transaction. There is also an informal market whereby securities are borrowed and lent within the financial markets.
Reset Preference Shares
Securities issued by a company that rank above ordinary shares for claims on earnings and dividends but rank below creditors and debt holders. In the event that the company is wound up RPS holders will generally rank in line with ordinary share holders. These securities can have a fixed or floating rate dividend. The term Reset applies because these securities have no fixed maturity but allow the issue to reset the terms at a known date in the future.
RITS
Reserve Bank Information and Transfer System. RITS is an electronic system for the settlement of exchange settlement cash transactions with the RBA and other banks.
S&P/ASX 200
Index which measures the level of Australian share prices at any given time. The S&P/ASX 200 is calculated using the current prices of 200 Australian companies listed on the Australian Stock Exchange.
Secondary market
Market where existing securities are traded.
Secured note
A note backed by a charge over an asset of the borrower.
Semi-Government bond
A negotiable debt instrument issued by an Australian State Government.
Senior note
Class of debt that ranks ahead of other debt and equity.
Settlement date
The date at which the payment for the security is made.
SPV
Special Purpose vehicle. Usually used in securitisations (eg Mortgage Backed Securities).
Subordinated debt
A class of debt that ranks behind other debt but ahead of equity.
Swap
A financial arrangement where two parties agree to exchange cashflows based on an agreed rate and/or basis. For interest rate swaps, one party to the swap would typically pay a fixed interest rate to and receive a variable interest rate from their counterparty.
Stock selection
The selection of the individual securities within a portfolio. This follows a process of analysis and the exercise of judgement as to which securities are most likely to add value to a portfolios return.
Sub-investment grade
Investments rated below investment grade. Speculative in nature.
Supra-national issue
A security issued by an entity that does not have one particular national identity, such as the European Community or a regional bank such as the Asian Development Bank or World Bank. Typically very highly rated.
Term deposit
Money invested (with a Bank or Building Society) for a fixed period of time at a pre-determined rate of interest in a non-negotiable form.
Tier 1 capital
That part of a bank's capital base consisting of share capital and other non-redeemable capital and reserves.
Trading margin
The margin above (or below) a variable market indicator (BBSW) where a floating rate security is trading in the market. It is the actual effective margin you will receive on a FRN if you buy it at the current price and hold it until maturity.
Transfer & Acceptance
Manual registration form used to register change of ownership of securities. Treasury Note Commonwealth Government issued short term securities for 5, 13 and 26 week periods issued at a discount to face value.
Trust
Investment vehicle which pools investors’ money, and is managed by financial professionals on behalf of those investors. Trusts generally concentrate on one area of investment.
Unit
An undivided part or share in a Fund as defined in the Trust Deed.
Unit holder
Investor registered under the Trust Deed as the holder of a Unit in a particular Fund.
Unit Trust
A form of pooled investment where a manager invests funds on behalf of a group of investors.
Unrated securities
Securities that have not been assigned a credit rating by a rating agency.
Unsecured note
A bond or note that is not backed by an asset or charge over an asset.
Wholesale market
Term used to describe that sector of the financial market where large institutions generally deal in minimum size parcels of at least $10,000,000.
Yield
The return to investors from a particular security, expressed as a percentage. Typically expressed as Yield to Maturity (YTM).
Yield curve
A visual representation of the term structure of interest rates, showing the relationship between yields and maturity.
Zero coupon bond
A bond with a coupon rate of zero. It trades at a deep discount to (well below) face value. Investors who buy and hold to maturity receive the face value, therefore earning the purchase yield on the security. Such securities are not common in Australia subsequent to the introduction of Division 16E of Part III the Income Tax Assessment Act 1936, which requires investors to bring to account for tax purposes, notional accrued interest in each year, despite actually receiving no cash income.
Research terms
4G - Fourth Generation Network
A telecommunications technology that provides high-speed wireless data communication, enabling faster internet access and improved capabilities for mobile devices.
5G - Fifth Generation Network
The latest generation of mobile network technology, offering significantly higher data speeds, lower latency, and greater capacity compared to previous generations.
ACCC - Australian Competition & Consumer Commission
An independent government agency in Australia responsible for enforcing competition and consumer protection laws to ensure fair and competitive markets.
ADR - American Depositary Receipt
A certificate representing ownership in shares of a foreign company, traded on U.S. stock exchanges, facilitating investment for U.S. investors.
AI - Artificial Intelligence
The simulation of human intelligence processes by machines, especially computer systems, including tasks such as problem-solving, learning, and decision-making.
AISC - All-in Sustaining Costs
In the context of mining or resource industries, this refers to the total costs associated with producing and maintaining a unit of a resource, including exploration, development, and operational expenses.
API - Application Programming Interface
A set of protocols and tools that allows different software applications to communicate and interact with each other.
APRA - Australian Prudential Regulation Authority
An Australian government agency responsible for regulating and supervising the financial services industry to ensure stability, efficiency, and integrity.
ARPU - Average Revenue Per User
A metric used in business to measure the average revenue generated by each customer or user.
ARR - Annual Recurring Revenue
The predictable and recurring revenue that a business can expect to receive on an annual basis from its subscription-based products or services.
ASP - Average Selling Price
The average price at which a company's products or services are sold over a specific period.
AUM - Assets Under Management
The total value of assets, such as investments, funds, or portfolios, that a financial institution manages on behalf of clients.
b/d - Barrels per day
A unit of measurement used in the oil and gas industry to express production rates.
BAU - Business As Usual
Refers to the normal, ongoing operations of a business without significant changes or disruptions.
bbl - Barrels
A unit of measurement for oil or other liquid commodities.
bcf - Billion cubic feet
A unit of measurement for natural gas and other gases.
BDD - Bad and Doubtful Debts
In accounting, refers to debts that are unlikely to be collected due to the financial instability of the debtor.
BEP - Break Even Point
The level of sales or operations at which a company's total costs equal its total revenue, resulting in neither profit nor loss.
BEV - Battery Electric Vehicle
A type of vehicle that is powered by an electric battery rather than an internal combustion engine.
BFS - Bankable Feasibility Study
A comprehensive study that evaluates the technical, economic, and financial feasibility of a project to determine its viability and potential for financing.
boe - Barrels of oil equivalent
A unit of measurement used to compare various energy sources by equating their energy content to the energy content of a barrel of crude oil.
BPO - Business Process Outsourcing
The practice of contracting specific business processes or tasks to external service providers.
BS - Balance Sheet
A financial statement that provides a snapshot of a company's financial position by showing its assets, liabilities, and shareholders' equity.
BTU - British Thermal Unit
A unit of measurement for energy, often used to quantify heat energy.
CAGR - Compound Annual Growth Rate
The average annual growth rate of an investment, revenue, or other metric over a specific period, taking into account compounding effects.
CAPEX - Capital Expenditure
Money spent by a company to acquire, upgrade, or maintain physical assets such as property, equipment, or infrastructure.
CAPM - Capital Asset Pricing Model
A financial model used to determine the expected return on an investment based on its risk relative to the overall market.
CC - Constant Currency
A method of reporting financial results that eliminates the impact of exchange rate fluctuations, providing a clearer view of underlying performance.
CDM - Change and Data Management
A process that focuses on managing and controlling changes to data, systems, or processes within an organization.
CDMA - Code Division Multiple Access
A digital cellular technology used in wireless communication systems.
CDN - Content Delivery Network
A network of servers distributed geographically to deliver web content and other digital assets efficiently to users.
CDS - Credit Default Swap
A financial derivative that allows an investor to "swap” or offset the risk of default on a debt instrument, such as a bond.
CFC - Customer Fulfilment Centre
A facility where products are stored, processed, and distributed to customers.
CIF - Cost Insurance With Freight
A trade term indicating that the seller is responsible for the cost, insurance, and freight charges associated with delivering goods to a specified destination.
COC - Cost of Credit or Cost of Capital
The expenses incurred by a company for borrowing funds, including interest payments and fees.
COD - Cost of Debt
The cost associated with borrowing money through loans, bonds, or other debt instruments.
COR/Ke - Cost of Equity
The required rate of return that an investor expects for investing in the equity (stock) of a company.
COGS - Cost of Goods Sold
The direct costs associated with producing or purchasing the goods that a company sells during a specific period.
Cash Reserve Ratio – CRR
The portion of bank deposits that banks are required to hold in reserve with the central bank.
CRU - Commodity Research Unit
An organization that provides analysis, forecasts, and market insights for various commodities.
Corporate Social Investment – CSI
Also known as Corporate Social Responsibility (CSR), it refers to a company's initiatives to contribute positively to society and the environment.
Concentrated Solar Power – CSP
A technology that uses mirrors or lenses to focus sunlight onto a small area, generating heat that can be used for power generation.
CSR - Corporate Social Responsibility
The practice of businesses taking into consideration the social, environmental, and ethical impacts of their actions and operations.
CVP - Cost Volume Profit
An analysis that explores how changes in costs, volume, and prices affect a company's profitability.
DDM - Dividend Discount Model
A method used to value a company's stock based on the present value of expected future dividend payments.
DJIA - Dow Jones Industrial Average
A stock market index that tracks the performance of 30 large, publicly owned companies listed on U.S. stock exchanges.
DMA - Direct Market Access
A technology that allows traders to directly access financial markets, bypassing intermediaries.
DMU - Dozer Mining Units (Front end mining equipment)
Large machinery used in mining operations, such as bulldozers, to move materials and peform tasks.
DPO - Days Payable Outstanding
A financial metric that measures the average number of days it takes a company to pay its suppliers and creditors.
DR - Depositary Receipt
A certificate representing ownership in shares of a foreign company, traded on a foreign stock exchange, facilitating investment for local investors.
DRP - Dividend Reinvestment Plan
A program that allows shareholders to automatically reinvest their dividend payments to purchase additional shares of the company's stock.
DSO - Direct Shipping Ore
Ore that can be shipped directly without the need for further processing.
EDIT - Earnings Before Interest and Taxes
A measure of a company's operating performance that excludes interest and taxes.
EDITA - Earnings Before Interest and Taxes and Amortisation
A measure of a company's operating performance that excludes interest, taxes, and amortization.
EBITDA - "Earnings before Interest, Taxes, Depreciation, and Amortisation"
A measure of a company's operating performance that excludes interest, taxes, depreciation, and amortization.
FDI - Foreign Direct Investment
Investment made by a company or individual from one country into business interests located in another country.
FED - US Federal Reserve Bank
The central banking system of the United States responsible for monetary policy and regulating the financial industry.
FINRA - Financial Industry Regulatory Authority
A private, self-regulatory organization in the United States that oversees securities firms and brokers.
Freight On Board - FOB
A trade term indicating that the seller is responsible for delivering goods to a specific location, and the buyer assumes responsibility once the goods are on board the transportation vessel.
FTA - Free Trade Agreement
An agreement between two or more countries to reduce or eliminate trade barriers, such as tariffs and quotas, to promote economic integration.
GJ - Gigajoules
A unit of measurement for energy, equivalent to one billion joules.
GPO - Group Purchasing Organisation
An entity that negotiates discounts and contracts with suppliers on behalf of member businesses to achieve cost savings.
GSM - Global System for Mobile Communications
A standard for mobile communication that allows voice and data transmission over wireless networks.
GVG - Global Value Chain
The network of interconnected activities, processes, and services that contribute to the creation, production, and distribution of goods and services on a global scale.
GW - Gigawatt
A unit of measurement for power, equal to one billion watts.
HMC - Heavy Mineral Concentrate
A concentrated mixture of minerals obtained through mining and processing.
IEA - International Energy Agency
An international organization that coordinates energy policies among member countries and promotes energy security, economic growth, and environmental sustainability.
Ke - Abbreviation for Cost of Equity (COE)
The return a company must generate on its equity investments to satisfy the expectations of its shareholders.
LIBOR - London Interbank Offered Rate
A benchmark interest rate at which banks lend to one another in the London interbank market, used as a reference for various financial transactions.
LIC - Listed Investment Company
A type of investment company listed on a stock exchange that invests in a portfolio of assets and offers shares to investors.
LIFFE - London International Financial Futures and Options Exchange
A former derivatives exchange in London that traded futures and options contracts.
LME - London Metal Exchange
A commodities exchange in London that trades non-ferrous metals and other materials.
LTV - Loan To Value
A ratio that expresses the loan amount as a percentage of the appraised value or market value of an asset, commonly used in mortgage lending.
MER - Management Expense Ratio
A measure of the total costs associated with managing an investment fund, expressed as a percentage of the fund's assets under management.
MGA - Managing General Agent
A type of insurance intermediary that manages underwriting and claims functions on behalf of an insurance company.
NABERS - National Australian Built Environment Rating System
A performance-based environmental rating system used in Australia to measure and compare the environmental performance of buildings and tenancies.
NASDAQ - National Association of Securities Dealers Automated Quotation System
An American stock exchange known for trading technology and internet-based companies.
Organization of the Petroleum Exporting Countries – OPEC
A group of oil-producing countries that collaborate on oil production and pricing policies.
Operating Expenditure or Operational Expenditure – OPEX
The ongoing costs associated with running a business, including salaries, utilities, maintenance, and other day-to-day expenses.
Petajoules (quadrillion) - PJ
A unit of measurement for energy, equivalent to one quadrillion joules.
Renewable Energy Certificates – RECs
Tradable certificates that represent proof of renewable energy generation, often used to meet renewable energy targets.
Software as a Service – SaaS
A cloud computing model in which software applications are provided over the internet on a subscription basis.
Sales, General, and Administrative expenses – SG&A
The combined costs associated with sales, marketing, administrative, and other non-production functions.
SKU - Stock Keeping Unit
A unique identifier assigned to a product to track inventory, sales, and other product-related information.
Total Productive Maintenance – TPM
A maintenance strategy that aims to maximize equipment efficiency and reliability by involving all employees in maintenance activities.
Time Value of Money – TVM
A financial concept that states that the value of money today is worth more than the same amount in the future due to its earning potential.
Underlying Insurance Margin – UIM
A measure of an insurance company's profitability that excludes the impact of investment income and other non-insurance-related factors.
VMAP - Volume Weighted Average Price
A trading benchmark that calculates the average price of a security based on both the price and volume of trades.
WTI - West Texas Intermediate
A grade of crude oil used as a benchmark in oil pricing, often referenced in commodity markets.
YTM - Yield To Maturity
A financial metric that calculates the annualised return an investor can expect to receive from a fixed-income investment, taking into account its current price, face value, coupon rate, and time to maturity.
