Financial lingo dictionary

A-D

A

Algorithm - very broadly an algorithm is a step-by-step procedure for solving a problem. 

B

Bond - Bonds are issued by governments and corporations when they want to raise money. When you buy a bond, you’re giving the issuer a loan, and they agree to pay you back the face value plus interest on a specific date. 

C

Cash buffer - Money you keep aside for the unexpected moments in your life aka a broken suppliance, lay off, needed furniture etc. 

Crypto - Cryptocurrency is a digital form of money that uses encryption for security. Unlike traditional currency, it operates without a central authority or bank and is stored on a decentralized network. Examples: Bitcoin, Ethereum, Litecoin.

D

Dirk Müller - German, financial expert, author and political advisor and founder of the Finanzethos GmbH. 

Diversification - Rather than investing in a single company, industry, sector or asset class a diverse portfolio invests across a range of different companies, industries and asset classes.

E-H

E

Elon Musk - Elon Musk is a billionaire entrepreneur and business magnate. CEO and founder of SpaceX, Tesla, Neuralink, and The Boring Company. He is known for his ambitious and innovative ideas, especially in the fields of electric cars, space exploration, and artificial intelligence. He has gained significant attention for his tweets and public statements on a variety of topics, including technology and sustainability. 

ESG - Stands for Environmental, Social, and Governance. ESG criteria are used by investors to evaluate a company's performance in terms of its impact on the environment, its treatment of employees and other stakeholders, and its governance practices, including transparency and accountability. 

ETF - Exchange traded funds is a collection of hundreds or thousands of stocks or bonds, in a single fund that trades on major stock exchanges

F

Fund - A fund is a collection of money from many investors, managed by professionals to buy a diverse portfolio of assets with the goal of earning a return. It allows individual investors to benefit from professional management and diversification without having to make individual investments.

H

Hedge fund - An investment fund that uses complex strategies and invests in a diverse range of assets to generate high returns for its accredited investors, often employing the use of leverage and hedging techniques.

I-L

I

Index - A statistical measure that represents the performance of a group of securities, such as stocks, bonds, or commodities. An index tracks the changes in the market value of a portfolio of assets, serving as a benchmark for the overall performance of a market or sector. Investors use indices to track the performance of a particular market or to measure the return on their own portfolios relative to the market. Examples of indices include the S&P 500, which tracks the performance of 500 large companies in the U.S., and the NASDAQ Composite, which tracks the performance of technology companies.

Inflation - A rise in prices over time that decreases the value of money.

Interest - The cost of borrowing money, expressed as a percentage of the amount borrowed. It is the amount charged by a lender to a borrower for the use of money, usually over a year. 

L

Long-term investment - A long-term investment strategy means you invest money for a longer time period e.g 15 to 20 years.

M-P

M

Market timing - A risky investment strategy that calls for buying and selling securities in anticipation of market conditions.

MSCI Index - The MSCI Emerging Markets Index is a selection of stocks that is designed to track the financial performance of key companies in fast-growing nations. 

P

Portfolio - A collection of investments which is managed as a collective whole with specific investment goals in mind. 

Precious metals - Metals such as gold and silver

Q-T

R

Rebalancing - Rebalancing refers to the process of returning the values of a portfolio's asset allocations to the levels defined by an investment plan. Those levels are intended to match an investor's tolerance for risk and desire for reward.

Recession - A downturn in economic activity, defined by many economists as at least two consecutive quarters of decline in a country's gross domestic product.

Robo-Advisor - A type of investment service that uses algorithms and technology to provide automated, low-cost portfolio management and financial advice to clients. Robo-advisors use algorithms to construct portfolios based on an investor's goals, risk tolerance, and investment time horizon. 

S

Share - Another term for a unit of ownership in a company represented by a stock. One share represents a small fraction of ownership in a company, and the total number of shares a company is referred to as its outstanding shares. When you buy a share, you become a part owner of the company and are entitled to a portion of the company's profits and assets. 

Stamp duty - The Swiss stamp duty is a tax which is charged when you buy and sell investment products.

U-XYZ

V

Volatility - The amount and frequency with which an investment fluctuates in value.

W

WallStreetBets (WSB) - A subreddit and online community of retail investors who discuss and share ideas about investments, including stocks, options, and other financial instruments. WallStreetBets is known for its playful and irreverent tone, as well as its focus on speculative and high-risk investments.