Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.
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American Depository Receipt (ADRs)

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

A company that pools money together from multiple investors and then invests it.
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Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.
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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.
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Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.
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Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.
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