unit 3

bonds

government bonds, you lend a country some money, safer investment, earn money +inflation

shares

you risk everything

to plummet

to go down very quickly

passive income

do nothing with it

liquid asset

something can be sold very quickly, convert to cash easily

asset

own

liability

owe to someone (loan)

reputable

having a good reputation

inferred

read between lines

hunch

gut feeling

hot air

a lot of talk, no action

level playing field

it’s more fair

trading floor, animal pit

involves presence, shouting

to be on the ball

constantly read about sth, checking in sth

trade off

risk and reward (give sth up to have sth else)

you reap what you sow

you get benefits from what you plant

to be in the black

to have money

to be in the red

to be in debt

contents insurance

insurance that pays off damage to our loss of individuals private possession located in that home

a share in a company

small ownership

stock exchange

a market in which securities are bought and sold.

volatile market

prices go up and down

predominantly

for the most part

asset

a resource with economic or monetary value

foremost

most importantly

indices

charts that report data about stocks

speculative bubble

a market situation in which prices for specific goods or stocks are traded at a high price before the prices fall drastically

coutingent

a group of key collectors

income stream

can be passive (doesn’t bring any money) or active (e. g salary from a job)

dividends

money every quarter

prices can rocket swiftly

very quickly

there are superb gains to be made

getting rich from stock (?)

monetary gain

An increase in value that occurs through inflation.

hedge against

to protect oneself from sth. they hedge against inflation by investing their money

safe/tax haven

taxes are levied at a low rate

collectable

an item valued and sought by collectors.

futures

sell sth e. g next year for this price, risky, speculate about future; instruct someone to sell sth for this price

to diversify your portfolio

to invest in many different types of things; don’t put all your eggs in one basket

trailing spouse

following Partner to another city because of a work assignment

price

what you are willing to pay

value

can be sentimental

economic bubble

a situation in market when the price of sth goes up to a point beyond its real value

stock market crash

a very quick drop in prices of stock, usually in a way that few people saw in advance

economic depression

a long period of economic inactivity in a country, shown by low wages, low incomes and high unemployment

recoup

limit loses

surges

a sudden large increase, typically a temporary one.

1. displacement

people become excited about a new situation and want to invest in it (new tech being unusually low)

2. boom

prices of the asset increase slowly after displacement. die to a lot interest, there are lots of investors and traders, which leads to prices rising quickly

3. euphoria

prices of the asset inflate at great speed. people think that there always will be more buyers, regardless of how the prices go up.

4. profit-taking

market is about to crash and people start to sell their assets. it is difficult to work out the real value of an asset because AD and AS no longer set the price

5. Panic

prices decrease rapidly. everyone tries to sell it quickly in order recoup losses. Supply surges and becomes much larger than demand. A lot of people lose a lot of money.

golden age

a period in the past when an art or an activity was at its peak

skilled craftsman

a worker who has a particular skill, such as carpenter

high demand

when a lot of people want a particular asset

intrinsic value

how much something is worth which may differ from how much it cost

trading vessels

a boat or ship that carries cargo or passengers for profit

partial ownership

more than one person owns something e.g. a company

feedback loop

the outputs of a system are circled back and used as inputs

exotic flower

often grown in sub-tropical climates, but usually from a different geographical region

property ladder

pay for part of the house

fluctuate

grow, go up & down

to get caught up in a hype

start following a trend

upward movement of price

prices go up

to soar

prices go up

prices were pushed to staggering lows

after market crashed, prices went low in a negative sense

to flatline

call to increase

to sit on it

to keep investing money; deal with sth

to diversify your portfolio

to invest in many types of things

downturn

decline

bull run vs bear market

bull markets tend to last for extended periods of time and are marked by rising corporate profits and declining unemployment. the opposite is a bear market, which is characterised by falling prices and investor pessimism

liquidity

turn into cash very quickly

diversification

action of diversifying

premiums

regular small investments

cash buffer

safety net

to eat away at

worried all the time

purchasing power

the financial ability to buy products and services

loss aversion - to be averse to sth

don’t want to do sth

investment in the middle ground

not in low/high risk

inevitably

certain to happen

go up

increase, reach a peak, recover, rocket

go down

decrease, drop, plummet, plunge

no change

fluctuate, level off, stablize

representative

consisting of people chosen to act and speak on behalf of the group

take it at face value

accept as it is as a value

he’s bound to

it likely to

to have vested interest in sth

you are very interested because of sth

scrutinize

examine or inspect closely and thoroughly.

i stand to...

bound to

a win-win situation

a situation in which both sides benefit

a zero-sum game

a situation in which a benefit gained by one side means a loss to the other side

build rapport

develop an understanding of and ability to communicate with someone

probe interests

find out the other side’s expectations