Stock Market Glossary

Stock market terminology can be quite confusing so we have compiled this list of the main terms used in the UK financial industry as a reference guide. We will be expanding this section in the near future. You can also play a game of hangman with these terms

Click on the starting letter of term you wish to lookup:

I

Illiquidity
Illiquid markets are typified by low levels of trading, with little underlying stock readily available. Buying and selling can cause exaggerated price fluctuations.
Initial Public Offering (IPO)
The first time a company's shares are traded on the stock exchange, also known as a flotation. A detailed prospectus or flotation document is issued for potential investors to read about the company, its history, strategy, directors, risks and accounts before they might invest.
Insiders
The board of directors and officers of a company. It can also be someone who has a large voting share in the company. These insiders are said to possess "insider information."
Interest-Rate Swaps
The process of changing the form of debts held by banks or companies, in which one party exchanges a stream of interest for another stream. Interest rate swaps can be fixed-to-floating, fixed-to-fixed or floating-to-floating rate swaps.
IPO Date
The date that a company's shares first started trading publicly.

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