Glossary

The most important terms from the world of funds - arranged alphabetically. Click one of the letters to display the relevant terms.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Emerging Markets

Emerging Markets is a collective term for stock markets in developing and emerging countries (in Central and Eastern Europe, South America, South and South East Asia.) These markets are on the one hand characterised by high growth opportunities and on the other by increased risk because of low liquidity.

Equities

An equity is a security that represents a certain proportion of a public limited company (PLC). The owner of an equity (shareholder) is a co-owner of the particular company and is directly involved in its corporate success via a dividend. Equities are traded on the stock market and supply and demand determine the price of the equities. The price represents the current value of the company. In the long term the yield on equities is higher than other forms of investment.

Equity / Equity Certificate

The equity certificate (also called investment certificate) documents the shareholder's claims on the funds' assets in the capital investment company. The equity certificates are made out to one or more equities.

Equity Analysis

Equity analysis attempts to predict rate performance. Here key figures on the company's profitability provide information on a share's future performance (basic analysis). In addition various chart formations concerning an equity (technical analysis) provide information on future price performance. Equity analysis serves as the basis for the decision to buy or sell equities.

Equity Funds

Equity funds are securities funds that primarily or exclusively invest their assets in equities. The return objective is based on growth. The investment period is viewed as long-term. The risk to the investor is lower compared to investing in a single company because the fund holds various equities.

Equity Price

The equity price is the price of one share. It depends on demand and supply and changes each trading day. The price is affected by such items as economic conditions (interest rate policy), industry perspectives, company profit and loss expectations, speculation and currency fluctuations etc.

Equity Value

The value of a fund equity certificate is calculated by dividing the total fund assets by the number of equities in circulation. This value is calculated on each trading day and corresponds to the redemption price.

Ex-Day

The day on which the coupon for the current distributed earnings is detached. This is normally the Monday before the date of the distributed earnings.