Glossary

Plain-language definitions of common market terms. These explanations do not constitute advice or recommendations.

Listed equity (share): A unit of ownership in a company whose shares trade on a regulated exchange. Holders may receive dividends if declared and typically have voting rights as described in the company constitution.
Dividend: A distribution of profits to shareholders, usually declared by the board. Amounts and timing are announced publicly; eligibility depends on record dates set by the company.
Market capitalisation: The total market value of a company's outstanding shares, calculated as share price multiplied by shares in issue. Used to classify companies as large, mid, or small cap in indices.
Index: A statistical measure tracking a basket of securities according to predefined rules. Index levels reflect combined price movements of constituents and are widely used for market commentary.
Limit order: An instruction to buy or sell at a specified price or better. If the market does not reach that price, the order may remain unfilled. Rules vary by broker and exchange.
Free float: The portion of shares available for public trading, excluding closely held or restricted stakes. Many indices use free-float weighting when calculating constituent weights.
REIT (Real Estate Investment Trust): A trust structure that owns or finances income-producing property and distributes income to unitholders according to its trust deed and regulatory requirements. Yields fluctuate with property and market conditions.
Prospectus: A formal document issued when securities are offered to the public, containing risk factors, financial information, and terms of the offer. Investors should read the full prospectus before subscribing.
Price–earnings (P/E) ratio: Share price divided by earnings per share. Commonly cited in research but sensitive to accounting choices and one-off items. Not a standalone measure of value or suitability.
Volatility: The degree of variation in a security's price over time. Higher volatility generally implies larger price swings, which may increase both potential gains and losses.