There are quite many financial terms which we keep hearing around us. Here are a few common ones which you may refer to whenever you wish to get into a “commerce mood”.
It is the difference between the total revenue and total expenditure of the government. It indicates the total borrowings needed by the government.
Scrip is a provisional certificate of money subscribed to a bank or company entitling the holder to a formal certificate and dividends.
An actuary is a person who compiles and analyses statistics and uses them to calculate insurance risks and premiums.
Bullish trend (stock market)
It is an upward trend in the prices of an industry’s stocks.
Bearish trend (stock market)
In financial markets it can be defined as a downward trend in the prices of an industry’s stocks.
In Ghana, organizations appointed by the Central Securities Depository (CSD) are called Depository Participants. CSD may terminate its agreement to clear or settle securities’ transactions.
An Equity Fund is a Mutual Fund that invests principally in stocks (shares). Equity Funds are also known as stock funds.
They employ a merger of securities to achieve both – short term protection of capital as well as growth.
Derivatives, Futures and Options
Derivatives are defined as financial securities without an independent value which rely on the value of an underlying asset. Futures and Options are common, popular derivatives in the capital market.