GLOSSARY

 

A

ASSET CLASS

Asset classes are different classes of financial investments that can be divided and distinguished into categories by their characteristics or properties. Here are some examples:
Liquidity and similar instruments: deposits or current accounts
Bonds: Investment Grade, High Yield, Government or Corporate Bonds. Bonds based on the short, medium, long term; Foreign or emerging market bonds, Stocks: a first division can be value or growth stocks; or large cap (large cap) or small cap (small cap); domestic, foreign, emerging markets, financial, health, energy, Real estate..., Foreign currencies..., Natural resources (oil, gas, coal, cocoa, wheat, cotton and other raw materials), Precious metals (gold, silver ...), Luxury goods (luxury collectables): works of art, collections, cars, jewelry, etc.

ASK

The ask price, on the other hand, is the one at which the "dealer" wants to sell a financial instrument. The bid price is the price at which the "dealer" is willing to initiate the purchase of a financial instrument.
The ask price is higher than the bid price. The so-called best ask is therefore the lowest ask price on the market for this financial instrument. Thus you can find the bid-ask spread, which corresponds to the profit margin of the dealer.

 

B

BEAR MARKET

The "bear market" is defined as that period of progressive decrease in market prices that can deal with a single asset, an index or many parts of the market. Both bearish signals from bearish market charts and investors who profit from a falling market are generally called "bearish."

BENCHMARK

The term benchmark indicates a reference parameter used by investors if we refer to the financial sector. In fact, in the field of investment, it is used as a reference "objective" index to compare the performance of the portfolio or of selected securities with respect to the performance of the reference market.
The benchmark is in fact useful for assessing the typical risk of the market in which the portfolio invests.

BID

The bid price is the price at which the "dealer" is willing to initiate the purchase of a financial instrument. The ask price, on the other hand, is the one at which the "dealer" wants to sell a financial instrument. The bid price is lower than the ask price. The so-called best bid is therefore the highest bid price on the market for this financial instrument. Thus you can find the bid-ask spread, which corresponds to the profit margin of the dealer.

BLOCKCHAIN

The blockchain has created a shared and non-modifiable accounting register that makes the transaction registration process and the traceability of assets easier thanks to a commercial network. An affected asset can be tangible like money or something even more material, or intangible like intellectual property or copyright. So anything with its own value can be tracked and traded on a blockchain network, which reduces risks and costs for sellers and buyers. This network therefore allows you to do it at the expense of central bodies, such as banks or institutions and for this reason it is linked to cryptocurrencies since they are traceable only on a blockchain network and are not entrusted to banks or institutions.

BLUE CHIP

Blue Chip is a common term in finance and is used to indicate highly capitalized companies, which are part of one of the major indices such as the SPX500 or the EURO STOXX50. The most common example of Blue Chip is Apple.

BOND

A bond is a system of indebtedness through which states, banks and corporations fund themselves on the financial market, providing bondholders with interests usually payable at fixed intervals (semiannual, annual, sometimes monthly). There are different types of bonds: treasury bonds (issued by national governments), corporate bonds (by banks and corporations) and supranational bonds (issued by an international organization such as the World Bank or the ECB). 
The mayor difference between a bond and a stock is that a stockholder has an equity stake in a company (he is an owner of the company), when a bondholder is a creditor of the company; another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks typically remain outstanding indefinitely.