ASX: This is the abbreviation for the Australian Securities Exchange

All Ordinaries: This is an index of the performance of the share prices of around 500 of Australia’s biggest companies. Also referred to as the All Ords

Bear market: This term refers to when prices on the market are falling and further falls are expected to occur

Blue chip stock: A blue chip stock is a large company with a steady history of turning a profit

Brokerage fee: This is the fee you must pay to a share trading platform when you use the platform to buy or sell shares

Bull market: This term applies when share market prices are rising and expected to continue to rise

CHESS (Clearing house electronic sub register system): This ASX system settles share trades and acts as the central registry for the electronic transfer of share ownership

Contract note: This confirms a buy or sell transaction and includes details such as the type of share, the price paid and the quantity traded

Dividend: Companies can distribute their profits or earnings to shareholders in the form of dividends. A dividend is calculated as a number of cents for each share you own

Float: The initial raising of capital through public subscription to a security

Fundamental analysis: This involves analysing the financial statements of a business to determine its overall financial standing.

Futures: Futures are contracts to buy or sell an asset at a specified future date

HIN: Stand for ‘Holder Identification Number’ which is similar in concept to a bank account number. Your HIN uniquely identifies you as the holder of shares on the CHESS sub register

Limit order: A limit order specifies the maximum (when buying) or minimum (when selling) price you are willing to accept for a share transaction

Listed company: Listed companies have shares that are purchased and sold through the ASX

Live price: This is the price of a share at a precise moment in time

Market order: A market order is an order to buy or sell a share at its current market price

SRN: Security Reference Number. If you don’t have a stockbroking account, or if your shares aren’t in your stockbroking account, they will be what’s known as Issuer sponsored at the company’s share registry. Issuer sponsored shares are tracked using a Security Reference Number (SRN), which is a ten or eleven digit number beginning with an ‘I’. You will have a different SRN for each different company that you own shares in. To find your SRN, just look for it on a holding statement or other communication that’s been mailed to you by the company’s share registry. Share registries handle the day-to-day shareholder administration for ASX listed companies. There are a few different share registries out there, so depending on which one your company uses will be the share registry that contacts you.

Short selling: This is when you borrow a security and subsequently sell it, with the obligation to buy it back in future at a much lower price

Volatility: This reflects the amount of fluctuation in share prices

Warrant: This gives its holder the right to purchase a security at within a certain timeframe and at a specific price

Yield: This is your return on an investment and is expressed as a percentage