Arithmetic mean

‘Arithmetic mean’ is a fancy way of saying ‘mean’ or ‘average.’

To find the arithmetic mean, you add together a set of numbers and then divide your answer by the amount of numbers you had in that original set.

This may sound wordy - especially for math-o-phobes - but it’s really simple.

Take 1,2,3,4,5 as a set of numbers.

1+2+3+4+5 =15

In our original set, there were 5 numbers. So to get the average we just do….

15 ÷ 5 = 3

Simples.

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52-week high/low

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Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

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The average annual return an investor sees over a set period of time.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

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Balance sheet

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Two simultaneous buy and sell transactions used to move a portfolio into an ISA.

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Junk Bond

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The world's largest stock exchange. Wall St HQ.

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Unique to the UK, these funds pool together money to invest from multiple investors.

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Packaged Retail and Insurance-based Investment Product (PRIIP)

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A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

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Profit on an investment, expressed as a percentage of the investment.

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A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

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A street in New York that became a figure of speech for the financial markets of the US.

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A tax deduction made at the source of the payment.

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A trading venue operated by the Frankfurt Stock Exchange.

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Zero-Coupon Bond

A bond that pays no interest at all. Read on to see how that can make sense for an investor.

Zero-Sum Game

A situation in which one person's gain is another's loss.

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