Absolute Return Objective

An investment objective that aims to generate positive returns for investments without refer to benchmark or reference.

Active Investment Approach

An investment strategy that involves active trading. Active managers change the components in portfolio time-to-time with the manager’s expectations of asset returns.

Active return

The difference between the return of portfolio and portfolio’s benchmark. This figure can be either positive or negative.

Bid–ask spread

The difference between the buy and sell price of a security.

Broker

A person or company who executes buy and sell orders of securities for clients and receives fees and commissions from them.

Dealer

A person or company who buys and sells securities from his own account.

Deflation

A general decline in overall price of goods and services in an economy.

Inflation

A general increase in overall price of goods and services in an economy.

Hyperinflation

Extremely high rate of inflation and normally out of control. There is no precise numerical definition of hyperinflation.

Relative Return Objective

An investment objective that aims to outperforms portfolio's benchmark or reference. It is possible for an investment out-performs its benchmarks but generates negative return.

Economic indicators

Economic data prepared by government and private companies that uses by investors or economists to interpret the overall health of an economy.

Fallen Angels

A debt with a investment grade but is downgraded to junk bond status.

GDP

Gross domestic product (GDP) is the market value of all finished goods and services produced within a country in a specific time period.

GDP per capita

The number that divided the GDP by the resident population on a specific date. This index is considered an indicator of a country's standard of living.