Apricot Academy
Part 24: Depository
In the financial world, the terms "depository" and "custodian" are often confused because they both deal with the safekeeping of securities. However, their roles are different. In our previous post, we discussed custodians, and now let's clarify how they differ from a depository and understand how these two participants in the financial markets cooperate to make investing possible.
Part 23: Custodian
Have you ever wondered, "Where are my securities held?" The answer is with a custodian. Let's take a closer look at who a custodian is and what role they play in the investment process.
Part 22: Stock Exchange
The main function of a stock exchange is to provide a central, transparent platform for trading shares, ETFs and other securities. A stock exchange is a regulated market where buyers and sellers meet to trade shares of publicly traded companies and other securities.
Part 21: Capital Gain
Simply put, a capital gain is the profit you make from selling an asset for more than you paid for it. Capital gains are a primary way investors earn returns from their investments, particularly in growth-oriented assets like stocks.
Part 20: Bond Yield
Simply put, yield represents the income generated by an investment over a specific period, expressed as a percentage of the investment's current market price or, in some cases, its face value. It essentially tells you how much income you're receiving relative to what you paid for the investment. Bond Yield (Current Yield) measures the annual coupon payment (interest payment) of a bond as a percentage of the bond's current market price.
Part 19: Portfolio Rebalancing
Portfolio rebalancing is the process of adjusting the weights of assets in your investment portfolio to maintain your desired allocation and manage the risk. Imagine your portfolio as a garden, with trees representing different assets (like stocks, bonds, and ETFs).
Part 18: Earnings Reports and Earnings Calls
In this post, we’ll explore two key concepts for understanding a company’s financial performance: earnings reports and earnings calls. These are essential tools for investors looking to make informed decisions about stocks.
Part 17: Indices (S&P 500, Nasdaq 100, FTSE 100 and others)
Welcome back to The Apricot Investor's Glossary! In this post, we'll explore indices – an important concept for understanding and navigating the stock market.
Part 16: Market Capitalization
In this blog post, we'll learn about a key metric used to understand the size and value of companies in the stock market: market capitalization.
Part 15: Investment Horizon
Today, we'll explore a crucial concept that applies to all investments: your investment horizon.
