A comprehensive list of investment and financial terms to help you understand the language of investing.
The strategy of dividing your investment portfolio among different asset categories, such as stocks, bonds, and cash, based on your goals, risk tolerance, and time horizon.
A yearly document published by a company that provides information about its financial performance, operations, and future outlook.
A market condition where prices are falling or expected to fall, typically defined as a decline of 20% or more from recent highs.
A debt instrument where an investor loans money to a government or corporation in exchange for regular interest payments and the return of principal at maturity.
The stock exchange of Malaysia, where securities are traded. Also known as Kuala Lumpur Stock Exchange (KLSE).
Central Depository System account - required for trading stocks in Malaysia. It holds securities in electronic form.
Interest calculated on both the initial principal and the accumulated interest from previous periods.
The practice of spreading investments across various assets to reduce risk. It involves owning different types of investments that may perform differently under various market conditions.
A portion of a company's earnings distributed to shareholders, typically on a quarterly basis.
An investment fund that trades on stock exchanges, holding assets like stocks, bonds, or commodities. ETFs offer diversification and typically have lower fees than mutual funds.
A company's profit divided by the number of outstanding shares, indicating profitability on a per-share basis.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index, tracking the 30 largest companies on Bursa Malaysia.
A measurement of a section of the stock market, calculated from the prices of selected stocks. Examples include the S&P 500, FTSE KLCI, and Dow Jones.
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
The main stock market index in Malaysia, comprising the 30 largest companies by market capitalization on Bursa Malaysia.
The ease with which an asset can be converted into cash without significantly affecting its price.
Debt securities issued by the Malaysian government, considered low-risk investments.
The total market value of a company's outstanding shares, calculated by multiplying share price by number of shares.
A collection of financial investments like stocks, bonds, commodities, and cash held by an individual or institution.
Price-to-Earnings ratio - the ratio of a company's share price to its earnings per share, used to determine if a stock is overvalued or undervalued.
The process of realigning portfolio weights by buying or selling assets to maintain the desired asset allocation.
The degree of variability in investment returns that an investor is willing to withstand.
The regulatory body overseeing the Malaysian capital market.
A type of security that represents ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
The length of time an investment is held before being sold, influencing investment strategy and risk tolerance.
A statistical measure of the dispersion of returns for a given security or market index. Higher volatility means prices can change dramatically in either direction.
