Terms

Average Down

By averaging down the investor gets more share per dollar. The effect of such purchases is that they bring the average price of the purchased shares down, closer to existing low level prices, rather than the previous higher costs. Averaging down can cover for losses, by bringing the price sufficiently low to make the said…

Average Daily Volume

Average daily trading volume (or ADTV) is a helpful tool in determining the liquidity of a market and in identifying sharp changes in trading patterns. These are usually indicative of circumstances that may be of relevance to shareholders and traders. When ADTV is high it means that the respective stocks are more competitive; they can…

Brokerage

Brokers can be found operating in multiple markets – insurance, stock exchanges, real estate, etc. The services they provide are in the area of intermediation, making demand and supply meet more easily. The fees they charge can take the form of a flat payment or a percentage of the transaction.

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Bull market

The term “bull market” is most often used to refer to the stock market, but is in fact applied to anything that is traded, including currencies, commodities and bonds.

Bear Market

Bear markets can be brief spells of falling prices, lasting as little as two months, or can span out over a decade or longer. Although the exact definition of a bear market is difficult to pat down, a bear market is often pronounced when prices decline by 20 per cent or more over two months…

Price-to-Book Ratio

A handy measure used to assess whether a company’s share price is justified or not is the Price-To-Book Ratio (P/B ratio). The P/B ratio is calculated by dividing the closing price of the stock by the company’s latest book value per share (from its quarterly or annual statements). Many of you would be familiar with…

Allocated Pension

Allocated pensions are by far the most popular product around for retirees looking to live off their super savings in retirement. So why are allocated pensions so popular? Why don’t retirees just withdraw their funds out of super and dump the lot into a term deposit or savings account, or even use their super to…

Development Application (DA)

Rennovating your home or investment property isn’t as simple as grabbing your tools, a couple of mates and a slab of beer. In most cases you need to go through the formal process of applying for and obtaining a Development Application (DA) and construction certificate before you can even think about renovating. When do you…

Greening your home

Australians, per capita, are among the highest producers of greenhouse gas emissions in the world but a few small changes around the home can make a significant difference – and it doesn’t have to involve spending bucket loads of money on retro-fitting your infrastructure. In fact, going green can actually save you thousands each year….