Reference

Financial markets glossary

Short, plain-English explanations of terms used across the learning hub.

AskThe lowest price at which a seller is currently willing to sell.

BidThe highest price at which a buyer is currently willing to buy.

Cash flowMoney moving into and out of a business during a period.

EPSEarnings per share: profit expressed on a per-share basis.

IndexA rules-based group of securities used to track part of a market.

LiquidityHow easily an asset can be traded without a large effect on its price.

Market capitalisationA company's share price multiplied by the number of shares outstanding.

Moving averageAn average of recent prices used to smooth short-term fluctuations.

Relative strengthHow an asset performs compared with a benchmark or peer group.

RevenueMoney generated from the sale of goods or services before expenses.

SpreadThe difference between the current bid and ask prices.

VolumeThe amount of an asset traded during a specified period.

VolatilityThe degree to which price moves up and down over time.

ValuationThe process of comparing a company's market price with measures of its business value or financial performance.