“As you can see, profits have soared!”
Do financial reports and economic forecasts leave you gloomy? Do your spirits plummet every time you read a market analysis? Well fear not, for we have the key that will help you unlock the jargon that is used in everyday financial markets.
The Markets / Prices / Volumes are HIGH:
Buoyant Prices remain BUOYANT across all sectors.
Strong The dollar is still STRONG despite the budget deficit.
Robust Trading volumes are ROBUST despite the gloomy forecast.
Bull Market Prices are rising as the BULL MARKET continues.
The Markets / Prices / Volumes are INCREASING:
To Rise Share prices ROSE after the profit figures were announced.
To Gain The FTSE 100 GAINED two percentage points.
To Go Up The price of oil WENT UP 10 cents per barrel.
To Pick Up Sales volumes have PICKED UP following a quiet January.
To Climb The price of soya CLIMBED 2% on the news.
To Grow The market for yoghurt GREW 5% last year.
The Markets / Prices / Volumes are INCREASING RAPIDLY:
To Soar Share prices SOARED following the announcement.
To Rocket The price of gold has ROCKETED following the dollar’s devaluation.
A / To Boom The BOOM in property prices continues.
A / To Surge Sales in high tech stocks SURGED on the back of the latest export figures.
A / To Jump Prices JUMPED by 10% in just one week.
The Markets / Prices / Volumes reached a MAXIMUM:
A / To Peak Copper prices PEAKED at $60 per ounce
The Markets / Prices / Volumes are TOO HIGH / OVERPRICED:
A Bubble The recent jump in oil prices is just a BUBBLE.
To Overheat The economy in China is OVERHEATING with a correction likely later in the year.
The Markets / Prices / Volumes are TOO LOW / UNDERPRICED:
A Bargain With the markets so low there are many BARGAINS to be found.
The Markets / Prices / Volumes are LOW:
Depressed Coffee prices remain DEPRESSED after the bumper crop.
Slack Trading volumes were SLACK due to the July 4 holiday.
Weak Demand is still WEAK because of the market uncertainty.
Bear Market The BEAR MARKET is responsible for low trading volumes.
The Markets / Prices / Volumes are DECREASING:
To Fall The dollar FELL one percent in trading today.
To Decline Sales DECLINED after a strong July.
To Slacken Off Trading has SLACKENED OFF as the markets enter the summer recess.
To Drop Off Sales have DROPPED OFF due to increased competition.
To Shrink The market for candy SHRANK in the wake of the health conscious trend.
To Wane Sales have WANED since the peak of the 1980s.
To Slip The Real SLIPPED 1 cent against the dollar in trading today.
The Markets / Prices / Volumes are DECREASING RAPIDLY:
To Plunge Consumer confidence has PLUNGED after the latest inflation figures.
To Plummet Share prices have PLUMMETED following the revelations.
To Slump Exports have SLUMPED in the steel industry.
To Collapse Demand for soya has COLLAPSED following the safety scare.
To Suffer Sales have SUFFERED from the hot weather.
To Tumble The price of Brent Crude TUMBLED from its peak of $35.
To Crash Enron shares have CRASHED and trading has been suspended.
To Slide The price of pork bellies SLID from its opening price of $20.
A Run There’s been a RUN on the dollar following the announcement.
Bottom drop out After Bearing’s Bank the BOTTOM’S DROPPED OUT of the market for futures.
Dry up Sales have DRIED UP completely.
To Wither Exports have WITHERED in the face of strong competition.
The Markets / Prices / Volumes reached a MINIMUM:
A Trough Profits are in A TROUGH but are expected to rise.
To Bottom Out Prices have BOTTOMED OUT and are starting to rise.
To Turn the Corner Profits have TURNED THE CORNER.
The Markets / Prices / Volumes have showed NO CHANGE:
Flat Sales were FLAT on February.
Stable Oil prices remain STABLE despite the war in Iraq.
To REACT POSITIVELY:
To Rebound Tech stocks REBOUNDED following the news.
To Rally The price of sugar RALLIED after a early morning fall.
To Bounce The Euro BOUNCED BACK after losing 5% in early trading.
To Recover The markets RECOVERED from early losses.
An Upturn There was an UPTURN in the price of gold today, after recent losses.
To REACT NEGATIVELY:
To Fall Back Telecoms stocks FELL BACK after an early surge.
To Burst The high tech bubble has BURST with prices expected to continue falling.
To Shatter Consumer confidence has SHATTERED
A Downturn The economy is experiencing a DOWNTURN after the over-optimism of last quarter.
To MOVE JUST A LITTLE (up or down):
To Creep The Euro CREPT up slightly on the day.
To Nudge Interest rates NUDGED downwards a quarter of one percent.
To Inch Inflation continues to INCH upwards.
To Budge Prices haven’t BUDGED at all since Christmas.
A LOT OF ACTIVITY:
A Rush The Amazon IPO has caused a RUSH of trading to buy the tech stock.
To arrive at a SIGNIFICANT FIGURE:
To Reach The Euro has REACHED $1.20 for the firs time since its launch.
To Touch The Dow Jones briefly TOUCHED 10,000 before dropping back.
To Brush Silver prices BRUSHED records highs before falling off.
To SUPPORT / STRENGTHEN:
A / To Boost Sales of sweaters were BOOSTED by the cold winter.
To Fuel Inflation has been FUELED by low interest rates.
Shot in the Arm Investors received a SHOT IN THE ARM from the news in Chicago.
To Prop Up The Real has been PROPPED UP by Government selling of dollars.
To WEAKEN:
To Undermine The political situation has UNDERMINED investor confidence.
An EXCESSIVE SUPPLY:
A Surplus The world grain SURPLUS is keeping prices depressed.
A Flood Sony is worried about a FLOOD of cheap imitations entering the market.
A Glut There is still a GLUT of butter within the European Union.
To Be Awash The European car market IS AWASH with cheap imports from Asia.
Saturated The market for cars is SATURATED in South America also.
An INSUFFICIENT SUPPLY:
A Shortage There is a SHORTAGE of good investments to recommend.
A Lack A serious LACK of water has restricted the harvest.
A Shortfall Management still have a SHORTFALL of $10m to complete the buyout.
A Dearth There has been a DEARTH of good news to report.
A Drought Car makers are facing an investor DROUGHT.
To be CAUSED BY:
On the back of Oil prices rose ON THE BACK OF the good news in Kuwait.
Stem From Investor uncertainty STEMS FROM a lack of information.
To COPY the ACTIVITY / BEHAVIOUR:
Pile In S&P upgraded the investment and small investors have PILED IN.
Follow Suit Shell have raised prices and BP are expected to FOLLOW SUIT.
Jump on the band wagon Small petrol suppliers are also likely to JUMP ON THE BAND WAGON.
POSITIVE FORECAST:
Bright The outlook for tech stocks is BRIGHT after the third quarter figures.
NEGATIVE FORECAST:
Gloomy Investors remain GLOOMY about the prospects of an upturn.
To ATTRACT:
To Lure Microsoft hope to LURE investors with their latest invention.
To AVOID:
To Shun Investors continue to SHUN telecoms stocks after the recent collapse.
INCREASE SPENDING:
Splurge The Government is likely to SPLURGE an extra $3 Bn on defense.
Spree Consumers are forecast for a spending SPREE coming up to Christmas.
REDUCE SPENDING:
Rein in The Company needs to REIN IN spending if it is to meet its cost target.
Cut back Further CUT BACKS are likely in the New Year also.
ENTER A MARKET:
Break into Nokia are attempting to BREAK INTO the market for handheld computer games.
Penetrate It’s been difficult for Brazilian manufacturers to PENETRATE US markets.
EXIT A MARKET:
Squeezed out of Chrysler is slowly being SQUEEZED OUT of the US car market.
To REALIZE the PROFITS from an INVESTMENT:
To Cash In Investors are CASHING IN on the recent gains in tech stocks.
To Cash Out Investors are CASHING OUT of derivatives and seeking alternative investments.
To Harvest Early investors in the IPO are HARVESTING their gains.
To Reap The stock has REAPED a return of nearly 20%.
To FAIL AS A COMPANY:
Go Bust Xerox nearly WENT BUST in the late 1980’s.
Go Bankrupt Marconi, a British company, WENT BANKRUPT after it failed to find a buyer.
Go to the wall Many companies WENT TO THE WALL when the hi-tech bubble burst.
BUYING & SELLING:
Put Option Option to SELL an asset at a specified exercise price on or before a specified date.
Call Option Option to BUY an asset at a specified exercise price on or before a specified date.
Go Long BUY shares / security in advance with the expectation the price will rise.
Sell Short SELL shares / security that the investor does not own.
SOME USEFUL FINANCIAL TERMS DEFINED:
Asset Any item of registered value owned by the company.
Liability Any debt or financial commitment registered against the company.
Return The money received from an investment.
Profit The money received from an investment after costs have been deducted.
Income Money received from sales or investments.
Share A certificate of ownership of a defined portion of a company.
Stock Any type of shares that are traded.
Security Certificate of ownership of stocks, bonds or tradeable derivatives.
Bond Certificate promising to pay a fixed amount based on a specified rate of interest.
Derivative Financial product (eg future/option) where the value is dependent upon an underlying asset.
Future A contract to buy a commodity or security at a future date at a price fixed today.
Warrant A negotiable security allowing holder to buy shares at a specified price and date.
Managed Fund A diverse portfolio of investments that are managed by a broker.
Portfolio A range of different investments held by a company or broker.
Broker Someone who buys and sells investments on behalf of a client.
Pension Fund A portfolio of investments managed to pay a company’s pension liabilities.
Pension The money employees receive after retirement.
To Hedge Buying one security and selling another in order to balance risk.
To Leverage To borrow money in order to invest.
Trend The direction in which a sequence or results is heading.
Tariffs Taxes charged on goods.
Interest Rates Taxas de Juros.
Insolvent Company cannot pay its debts.
Administration Company is technically bankrupt and is being run by lawyers.
Yield The return on an investment.