S&P ASX 200
Investable benchmark for the Australian equity market. The S&P/ASX 200 is comprised of the S&P/ASX 100 plus an additional 100 stocks.
The S&P500 is a stock market index that measures the performance of 500 largest companies, by market capitalisation, listed on exchanges in the United States.
Provisions in the Corporations Act giving directors an exemption from insolvent trading liability where they are developing a course(s) of action that is 'reasonably likely' to lead to a 'better outcome' for the company than administration or liquidation. There is a list of factors to be considered by directors in attempting to use the safe harbour provisions and directors should seek appropriate advice from a suitably qualified professional
When you and your employer agree to pay a portion of your pre-tax salary as an additional contribution to your superannuation. This can be a tax-effective strategy and usually suits middle to higher income earners.
A deposit account held at a bank or other financial institution that offers a higher interest rate than most basic transaction accounts. Account holders can usually access their account at any time.
A trick designed to cheat you of your money.
An additional credit card given to a person you have nominated where any money they spend will be borrowings against your credit card account. You are liable for transactions on both cards.
Trading on market after the primary issue.
A creditor who holds a security interest in some or all of a company's property
A loan that is backed by an asset. The lender may sell the secured asset to get its money back if you cannot repay the loan. Opposite of unsecured loan.
A type of fixed interest investment that has a first ranking security interest over other property, for example a debt. Issued by companies as a way of raising capital whereby they promise to pay a fixed rate of interest and repay capital at a date in the future.
Securities Exchanges Guarantee Corporation (SEGC)
Trustee of the National Guarantee Fund (NGF).
In relation to financial assets, a security is an investment such as shares or bonds which can be traded in financial markets.
Security for a loan
An asset that is put up to guarantee a loan. If the loan is not repaid, the lender may sell the asset to get its money back. See also mortgage.
A form of security taken by a creditor over company assets, including personal property and real property (previously known as a 'charge'). Personal property of the company includes tangible and intangible property other than real property (e.g. motor vehicles, equipment, intellectual property and company shares). A mortgage and a hire purchase agreement are each a type of security interest
Security reference number (SRN)
Allocated by an issuer to identify a holder on an issuer sponsored or certificated subregister.
Self-managed super fund (SMSF)
A private super fund you can manage yourself. SMSFs are regulated by the Australian Taxation Office and can have one to four members.
Sell a contract
Enter into a futures contract to sell a specified underlying asset at a future date.
Senior debt holder
A holder of a debt security such as a corporate bond or secured note, in which the debt holder has priority over unsecured (subordinated) debt holders in the event that the company is wound up.
All option contracts of the same class having the same expiry date (see expiry, expiry date, expiration) and the same exercise price.
When the title or legal ownership of a financial product, such as shares or ETFs, is exchanged for money. A broker, or an agent of the broker, handles settlement.
The day in which cash settlement or delivery resulting from expired futures or options contracts is conducted.
The calendar month in which the last day that the contract can be traded falls.
ATO term - Super guarantee - a prescribed minimum level of super that an employer must contribute on behalf of employees. The ATO administers the Super Guarantee Act, ensuring employers meet their obligations to employees.
ATO term - Superannuation holding account - money placed in a temporary holding account administered by the ATO pending transfer to an appropriate super fund.
ATO term - Also often known as the 'hidden economy', 'cash economy' or 'non-observed economy'. Refers to the 'economic underground' boundary of an Organisation for Economic Co-operation and Development (OECD) framework. It involves economic activity not declared, which may be a result of attempts to avoid tax obligations.
A share is part ownership of a company. Shares are also known as equities or stocks.
Company's issued and paid-up capital.
Also known as a scrip. A document with an identifying number that states that the person is a registered holder of a number of securities. Replaced by electronic holding statement in January 1999.
A managed fund in which the investment manager invests in range of shares to satisfy a specific investment goal, such as maximising capital growth, dividend income or franking credits. May focus on a specific geographic region or industry sector.
Measure of movement in the price of a nominated group of shares.
Organisation which, on behalf of a company, records changes in share ownership, issues share holding statements and makes adjustments for dividend payments, bonus and rights issues.
Part-ownership in a company.
Trader who has sold or who holds a position that will benefit from falling prices.
The practice of selling a security or commodity that you do not own. You borrow the commodity or security from a third party (usually a broker) and immediately sell it to a buyer. You then buy identical securities back at a later date, to return to the lender.
Single Traded Auction Price (STAP)
The single traded auction price methodology: The STAP algorithm matches at a single price the most trades possible. Accordingly there is only one traded price each day. The indicative STAP price is visible to all during the market pre-open period.
An investor who has had a gross annual income of $250,000 or more in each of the previous two years or has net assets of at least $2.5 million, as prescribed by the Corporations Regulations 2001 (reg 6D.2.03 and reg 7.1.28).
SPAN = Standard Portfolio Analysis of Risk. SPAN is the margin calculation engine used by ASX Clear and ASX Clear (Futures) to calculate margins.
Special transaction statement
Defined in the Listing Rules as a statement of transactions in a security holder's account issued by the entity at the request of the holder.
CHESS Securities lodged as collateral to cover call options written over those specific CHESS securities. For example 1,000 BHP shares lodged to cover one written BHP call option.
An investment that has the possibility of making an extraordinary profit but also a high possibility of losing most or all of an investor's initial investment.
Share split or stock split involves the increase of the total number of shares outstanding, accompanied by a proportionate decrease in the price of each share. The aggregate value of the shares on issue remains the same.
Splitting shares into units of lesser value.
Nearest expiry month to the present.
A state tax imposed on certain transactions, such as car registrations, mortgages and property transfers.
Measures the dispersion of a set of data from its average. The higher the standard deviation the wider the spread of data. For investment returns, a higher standard deviation indicates a wider range of returns which indicates more volatility in a particular market.
Security where investors are purchasing both a trust and a related company through one security. This structure binds the investment portfolio together with a related business that may include a funds management company and/or property development company.
Statement of Advice (SOA)
A document that sets out the advice given to a consumer by their licensed financial planner or adviser. It must include the basis on which the advice is given, details of the providing entity, and information on any payments or benefits the adviser or licensee will receive.
A guarantee required under law that says traders and manufacturers must ensure their products are suitable for the purpose for which they are supplied.
Short Term Interest Rate.
Equities or shares. Can also be used to describe inventories held by a business.
A market on which securities are bought and sold.
A stock is part ownership of a company. Stocks are also known as equities or shares.
Predetermined sell (buy) order at a price below (above) the current price intended to minimise losses in event of further falls (rises).
A form of credit card offered by large retailers. Store cards are used like regular credit cards but usually charge much higher interest rates
A fee paid by property owners for the management of the common property of buildings established under a strata title
A building, flats or units divided into blocks, each of which has a title and common property that is part of the land and building in the strata plan.
Price at which the taker (buyer) of an option or warrant may buy/sell the underlying asset. Also known as the exercise price.
A type of debt security in which the note holder's claim to the company's assets ranks behind those of secured note and senior debt holders if the company is wound up.
Initial purchasers in the primary issue.
Company controlled by another company. The subsidiary company is an entity in its own right and pays its own tax.
Person/company holding more than 5% of a company's voting rights.
Money that you and your employers put into a special fund during your working life to provide you with money to live on when you retire.
Superannuation guarantee (SG)
The minimum amount that your employer must pay into your superannuation fund. It is currently 9.5% of your gross salary.
Superannuation withholding tax
ATO term - Tax deducted from super payments made directly to an individual.
In a swap agreement, a counterparty agrees to pay the difference between the value of the ETF's assets and the value of the assets or index it is designed to track. When a synthetic ETF enters a swap agreement, this creates counterparty risk.
Sydney Computerised Market (SYCOM) is the previous name for the automated dealing system used to trade futures and ASX Listed CFDs. Now called ASX Trade24.