Glossary of Terms & Definitions

Refers to the periodical financial and operational notes released by a company, typically on an annual or semi-annual basis, providing insights into its performance, strategies, and outlook.

Is the average yearly return on an investment, expressed as a percentage, that takes into account compounding over time..

The standard deviation of returns converted to an annual figure. It measures the annualized volatility or risk of an investment, indicating the dispersion of its returns over a one-year period.

The net worth of a company according to its balance sheet, calculated as total assets minus total liabilities.

The amount of equity a company's common shareholders have on a per-share basis. It's calculated by dividing the company's common equity by its number of outstanding common shares.

The rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested at the end of each year. It represents the smoothed annual return over a given time period.

Is a business entity that owns controlling shares in other companies (subsidiaries) and typically does not produce goods or services itself. Its main purpose is to own, manage, and control other companies and assets—such as real estate, stocks, intellectual property, or other investments—without being directly involved in daily operations.

The process of assessing the value of a company or an asset using proprietary models, data, and assumptions within an organization, often for strategic, accounting, or investment purposes without public disclosure.

Fundamental guidelines or philosophies that guide an investor's decision-making process, often encompassing risk management, diversification, and long-term perspectives.

A holding company that, in addition to holding shares in subsidiaries, also engages in its own operational business activities (e.g., producing goods or providing services).

A collection of investments held by an individual or institution. A well-diversified portfolio typically includes a mix of asset classes to balance risk and return.

Refers to a company whose ownership is concentrated among a small number of shareholders, often founders, management, or private investors, and whose shares are not traded on public stock exchanges.

Describes a company whose shares are listed and bought/sold on a public stock exchange, making its ownership available to the general public. These companies are subject to strict regulatory oversight and disclosure requirements.

A holding company whose sole purpose is to own controlling interests in other companies and does not engage in any operational activities or production of goods/services itself.

A comparison of a company's financial results or performance in the most recent quarter against the results of the immediately preceding quarter.

Financial instruments that represent a monetary value, such as stocks, bonds, mutual funds, or other investment vehicles, which can be traded.

The distribution of an investment portfolio across different sectors or industries of the economy. This strategy helps diversify risk and capitalize on growth opportunities in specific sectors.

A measure of risk-adjusted return, calculated by subtracting the risk-free rate from the investment's return and dividing the result by the investment's standard deviation of returns. A higher Sharpe ratio indicates better risk-adjusted performance.

Refer to the percentage of a portfolio's assets that are replaced in a given year (portfolio turnover) or the volume of shares traded for a particular security over a period (share turnover).

A measure of investment performance that eliminates the distorting effects of cash inflows and outflows, often used to compare the performance of investment managers.