Browsing: Financial glossary

Business and investing words explained

When a City broker asks you if you fancy a bit of liquidity, you’re probably not being invited to the pub for a swift half…

Currency risk arises from exchange rate moves between pairs of currencies. If you have investments or assets in a foreign country with a different currency, you face currency risk, unless the foreign currency is pegged to your domestic currency or your exposure is hedged. A simple example shows how currency…

Growth investing is about putting your money into companies you think will make much bigger profits in the future.

The earnings yield is a way of looking at the income generated by a company in a similar way to the yield you’d get from a bond or the dividend yield of a share. It tells you what percentage return the company is making, on the basis of its after-tax…