|A Contract for Difference (CFD) is a tradable instrument that mirrors the movements of the asset (eg. shares - in the case of EasyEquities) underlying it. It allows for profits or losses to be realised when the price of the underlying asset moves in relation to the position taken, but the actual underlying asset is never owned. For more info click here
|A corporate action is a step taken by a publicly-traded company that affects the securities (shares and other financial instruments) issued by the company and usually sets off a process that impacts the holders of those securities. Some examples of corporate actions include: stock splits, dividend issues, mergers and acquisitions, and spinoffs. Each corporate action serves a different purpose.
|Dilution is a reduction in the ownership percentage of a share of stock caused by the issuance of new shares. Dilution can also occur when holders of stock options, such as company employees, or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company, making each share less valuable.
|EasyMoney is a currency specific to EasyEquities that we created to reward users. It can be earned for referring friends and family and used to offset commissions.
|An ETF or Exchange Traded Fund is a pooled investment vehicle that offers diversified exposure to a particular area of the market. It can invest in stocks, bonds, commodities, currencies, options or a blend of different assets. Investors buy shares in the ETF, which represent a proportional interest in the pooled assets within the fund. For more info click here
|Fractional Share Right
|In very simple terms, when an investor doesn't have enough money to buy a whole share in a particular company of their choice, Fractional Share Rights (FSRs) give them the ability to invest whatever that sum of money is, in a fraction of that share. For a more detailed description click here
|In the Financial world an Instrument is a tradable asset of any kind. When we are talking about Investing on EasyEquities, the instruments available on the platform are shares and ETF's.
|An Issuer is a legal entity (i.e., corporation, government) that develops, registers and sells securities for the purpose of financing its operations.
|The degree to which an asset or security can be bought or sold in the market without affecting the asset's price.
Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold are known as liquid assets.
A market or exchange is a marketplace in which shares and other financial instruments are bought and sold (traded).
For example, the Johannesburg Stock Exchange (commonly referred to as the JSE) in South Africa or the NYSE (New York Stock Exchange) or NASDAQ in the USA are all considered "markets".
"The market" is also sometimes used as a collective umbrella term for all of the different worldwide markets.
|The open market refers to trades (buying and selling) that take place on a stock exchange.
|Portfolio is a word used to describe all the Investments owned by an Investor. In the broader use of the word, we could call it an Investment Portfolio and the portfolio could contain things like property and art together with shares and other investments.
In stock market or share terms, a Share Portfolio would include all the different securities (shares, ETF's etc.) that an Investor owns.
|A security is a financial asset of any kind that can be bought and sold. Securities broadly fall into three different categories as follows:
|A stock exchange is a form of exchange which provides services for stock brokers and traders to buy or sell stocks, bonds, and other securities.
|Is simply an investment term explaining the date of settlement.
Whenever you buy or sell a share, there are two important dates of which you should always be aware: the transaction date and the settlement date. The abbreviation T+3 refer to the settlement date of security transactions and denotes that the settlement occurs on a transaction date plus three days. (I.e. three days after the transaction date)
|The Tax Years runs from 1 March to 28/29 February every year.