Beginners' Guides

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Marking to market
Glossary

Marking to market

This is the process of updating a portfolio to reflect the latest available prices.
23 Jun 2022
Three things you should learn from Bill Ackman's brilliant Netflix trade
Bill Ackman
Investment strategy

Three things you should learn from Bill Ackman's brilliant Netflix trade

Hedge fund guru Bill Ackman has lost $400m selling Netflix shares. John Stepek explains why this was a brilliant trade, and outlines three things that…
19 May 2022
What is a stock split?
Glossary

What is a stock split?

A stock split increases the number of a corporation's issued shares by dividing each existing share.
4 Apr 2022
Yield curve
Government bonds

Yield curve

A yield curve shows the relationship between the yield on securities and their maturities (how long it is until they can be redeemed at their face val…
9 Mar 2022
Cyclically adjusted p/e ratio (Cape)
Glossary

Cyclically adjusted p/e ratio (Cape)

A classic price/earnings ratio is the relationship between the current share price and one year's earnings, usually the last year, or a forecast for t…
6 Mar 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
Cover of MoneyWeek magazine issue no 1022, Friday 23 October 2020

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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
Cost/income ratio
Glossary

Cost/income ratio

The cost-to-income ratio is a key financial measure, particularly important in valuing banks...
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
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.
2 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
What is a firm’s true profit?
Investment strategy

What is a firm’s true profit?

Knowing how much profit a firm makes is vital. But company accounts rarely make it straightforward. Here, we explain how to find the figures you need …
18 May 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