Understanding Jargon U - Z
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Understanding financial Jargon U - Z
Understanding the lingo can be overwhelming, here are some basic terminologies to help you get an edge on your friends, family and colleagues.
A firm which buys an issue of securities from a company and resells it to investors.
The unit price is a measurement that reflects the value of a Fund at a point in time. Prices are either allocation or issue (buy in at) or release or redemption (sell at). The total investment of a unit holder can be measured by the number of units held multiplied by the unit price.
The measure of performance against an index, competitor or any other benchmark.
Underweight is less than the benchmark holding in an asset class; overweight is greater than the benchmark holding.
Volatility is a measure of the variability of returns and is the standard deviation of investment returns over a specific period of time. The higher the standard deviation, the higher the level of risk associated with that investment.
A term used interchangeably with private equity.
Percentage or proportion of the portfolio invested in each asset class.
Tax levied on dividends paid abroad.
A measure of return on an investment expressed as a percentage (calculated by dividing the income from an asset by its current capital value).