Beginners' Guides

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Index fund
Funds

Index fund

Index funds (also known as passive funds or "trackers") aim to track the performance of a particular index, such as the FTSE 100 or S&P 500.
18 Jan 2022
Ebitda
Glossary

Ebitda

Earnings before interest, tax, depreciation and amortisation (EBITDA) takes operating profit and adds back two subjective costs: depreciation and amor…
11 Jan 2022
Initial public offering (IPO)
Glossary

Initial public offering (IPO)

An initial public offering (IPO) is the process of launching a firm on to the stock exchange for the first time by inviting the general public and fin…
13 Dec 2021
What is a rights issue?
Glossary

What is a rights issue?

A rights issue gives investors who already hold shares in a company the right to buy additional shares in a fixed proportion to their existing holding…
9 Dec 2021
Short squeeze
Glossary

Short squeeze

When a large number of short sellers target the same stock, the price can rise in a self-perpetuating circle known as a 'short squeeze'.
6 Dec 2021
Smart beta
Glossary

Smart beta

Smart beta funds aim to combine the best aspects of passive and active management, aiming to beat the index by eliminating any element of discretionar…
19 Nov 2021
Index provider
Glossary

Index provider

Stockmarket indices such as the FTSE 100 play a huge role in investment. But where do they come from and who maintains them?
12 Nov 2021
Cover of MoneyWeek magazine issue no 1022, Friday 23 October 2020

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MoneyWeek's financial glossary
Investment strategy

MoneyWeek's financial glossary

All those financial terms you wished you knew but were too embarrassed to ask about.
12 Nov 2021
Contango
Glossary

Contango

The price of an asset for forward delivery is usually above the price you would pay today...
22 Oct 2021
Inflation
Glossary

Inflation

Inflation is the rise in the general level of prices in an economy (or a sector of an economy) over a given period of time. It is also sometimes defin…
29 Sep 2021
Revenue reserve
Glossary

Revenue reserve

Investment trusts can hold back up to 15% of their dividends to build up a revenue reserve, which they can then draw on to maintain their own dividend…
29 Sep 2021
Misery index
Glossary

Misery index

The misery index is constructed by adding the unemployment rate to the inflation rate.
10 Sep 2021
Zombie company
Glossary

Zombie company

A zombie company is one that earns enough money to keep running, and to pay the interest on its debts, but not enough to expand, invest or to pay down…
17 Apr 2021
World's biggest fraudster Bernie Madoff has died – what was his scam?
Investment strategy

World's biggest fraudster Bernie Madoff has died – what was his scam?

Bernie Madoff, perpetrator of the world's biggest Ponzi scheme, has died in prison at the age of 82. Matthew Partridge looks at his massive fraud sche…
14 Apr 2021
Margin call
Glossary

Margin call

When an investor borrows to bet on markets, they put down a deposit known as “margin”.
2 Apr 2021
A beginner’s guide to bitcoin: what is bitcoin?
Bitcoin & crypto

A beginner’s guide to bitcoin: what is bitcoin?

As a completely novel concept for many people, bitcoin can take a little effort to get to grips with. In the first of a short series on the cryptocurr…
1 Mar 2021
Which online broker is best for you?
Share dealing

Which online broker is best for you?

Investors looking to trade online have a wide choice of brokers offering different services. Here's how to find the broker that best suits your needs.
12 Feb 2021
How to avoid being ruined by market bubbles
Investment strategy

How to avoid being ruined by market bubbles

It’s not always easy to spot bubbles. And even if you do spot them, they can be hard to resist. Here, John Stepek explains how to overcome your natura…
29 Jan 2021
What you need to know about investing in funds
Funds

What you need to know about investing in funds

One of the most basic investment products is the fund. John Stepek explains the basics of funds, including the difference between active and passive f…
28 Jan 2021
A beginner’s guide to inflation – everything you need to know
Inflation

A beginner’s guide to inflation – everything you need to know

One of the most frequently mentioned topics in the news these days is inflation. But what exactly is inflation and how does it affect the economy and …
18 Jan 2021
Resource curse
Glossary

Resource curse

The term “resource curse” refers to the observation that countries with abundant natural resources also tend to be less economically developed than th…
14 Jan 2021
Balance of payments
Glossary

Balance of payments

The balance of payments refers to the accounts that sum up a country's financial position relative to other countries.
8 Jan 2021