Glossary of Stock Trading and Investment Terminology

Development Application (DA)


If you want to make any modification to a building in Australia, you may need to drop a Development Application (DA) at first to get the permission for the project. Modification of a building is not that simple in Australia. You will have to get a construction certificate along with a Development Application in order to go for it. Based on the Development Application, your local council will come up with a “development consent” which will give you the eligibility to start working on a particular building or structure.

EBITDA


EBITDA refers to the earnings before interest, taxes, depreciation and amortisation. This is a type of measurement process which allows an investor to have some idea about how much money a company is generating before the deduction of taxes, deprecation and amortisation. It is very much important for any investor to know how much money a particular business is making before deciding whether to invest money in that business and EBITDA is considered as one of those methods that can be used by the investor to find that. EBITDA is calculated through the following formula:

Transition to Retirement Pension


If you are looking for a way to smoothly move from work to retirement then transition to retirement pension is something that can help you out with it. Once you reach the preservation age- which is usually 55 with the number increasing and can be 60 if you were born after June 30, 1964- you can maintain or reduce the working hours and access the super (which includes the preserved pension) through a super pension.

Moving Averages


Moving average (in short MA) is a kind of indicator which is used for technical analysis in order to show the average value of the price of a security over a specific period of time. Moving averages are normally used to serve various purposes like for defining areas of possible support and resistance, for determining the momentum as well as for smoothing out the noise which occurs due to volume functions.

Agribusiness Investments


The term agribusiness investments refer to investments in various agricultural sectors including timber and wine. In the case of agribusiness investments, an investor grows crop and the cost involved with it (which includes the expense of establishment and ongoing expenses) is normally considered as business expenses which are tax-deductible against other earnings. The earnings that a crop grower generates through the sale of the crop are considered as assessable income.

Benefits of investing in Agribusiness

Guaranteed Stop Loss


What is Guaranteed stop loss?

Guaranteed stop loss (GSL) is a kind of protection provided by a CFD provider to an investor in order to make sure that the investor is not incurring significant amount of loss due to unfavorable market conditions. The whole idea of guaranteed stop loss is to reduce the negative effects of price gapping. It will provide the necessary protection for the investors regardless of what happens to the original share price.

Understanding the GSL through scenario

Portfolio Management Software


If you are in need of some assistance to monitor your portfolio and for preparing reports for accountant come tax time then Portfolio Management Software is a piece of technology that can help you out with that.

Ask


The term “Ask” is widely used throughout the trading industry which refers to the price at which a seller offers currency, futures, stocks, CFDs or options. Some other synonymous terms includes: asking price, asked price, offering price, offer and ask price.

Relation Between Ask and Bid

Bonus Issue


A bonus issue (also called capitalisation issue, bonus shares, scrip issue) is shares given to shareholders free. These are shares you do not have to pay for and a means for the company to distribute historic retained profits. No cash changes hands between investors, so this is an accounting transaction. Bonus issues can boost the marketability of stock.

Offer (Ask)


Offer refers to the price at which the sellers are willing to sell their shares. In most cases offer is the highest price that a buyer is willing to pay for a particular asset while on the other hand it is the lowest price at which the seller is interested to sell the asset.

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