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Glossary Finance & Markets

Short selling

Borrowing an asset, selling it, and hoping to buy it back cheaper. Losses are theoretically unlimited, since there is no ceiling on how high a price can go.

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Index

A measure of a slice of the market, such as the S&P 500 or the FTSE…

Legislation

Law made by a parliament or congress, as opposed to rules written by regulators or judgements…

ETF

An exchange-traded fund: a basket of assets that trades on an exchange like a single share.…

Quantitative easing

A central bank creating money to buy bonds, pushing down longer-term interest rates when short-term rates…

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