Glossary
APRA: Australian Prudential Regulation Authority -- the regulator overseeing banks, insurers, and superannuation funds.
ASIC: Australian Securities and Investments Commission -- the regulator overseeing companies, markets, and financial services conduct.
ASX: Australian Securities Exchange -- the country's primary stock exchange.
Basis point: One hundredth of a percentage point (0.01%), commonly used to describe changes in interest rates.
Bond: A debt security where an investor lends money to a government or company in exchange for regular interest payments.
Buyout: The purchase of a controlling stake in a company, often by a private equity firm using significant borrowed money.
Capital markets: The markets where companies and governments raise funding by issuing shares or bonds to investors.
Cash rate: The interest rate set by the Reserve Bank of Australia that influences borrowing costs across the economy.
Credit rating: An assessment of a borrower's ability to repay debt, issued by agencies like Moody's or S&P.
Dividend: A portion of a company's profit paid out to shareholders, usually on a regular schedule.
Float: The process of a private company listing its shares on a stock exchange for the first time.
Fund manager: A professional or firm that invests pooled money on behalf of clients, such as superannuation or managed funds.
Hedge fund: A pooled investment fund that uses varied, often aggressive strategies to generate returns for its investors.
IPO: Initial public offering -- when a private company first sells shares to the public and lists on a stock exchange.
Leveraged buyout (LBO): An acquisition of a company financed largely with borrowed money, secured against the acquired company's assets.
Market capitalisation: The total value of a company's shares on the stock exchange, calculated as share price multiplied by the number of shares.
Mergers and acquisitions (M&A): Corporate transactions where companies combine or one company purchases another.
Monetary policy: Actions by a central bank, such as setting interest rates, to influence a country's money supply and economic activity.
NASDAQ: A US stock exchange known for listing many major technology and growth companies.
Private equity: Investment funds that buy stakes in private companies, often to restructure and later sell them for a profit.
Prudential regulation: Rules requiring financial institutions to hold enough capital and manage risk to stay solvent.
RBA: Reserve Bank of Australia -- the nation's central bank, responsible for monetary policy and the cash rate.
Regulator: A government body responsible for overseeing and enforcing rules within a particular industry.
Series A/B/C: Successive funding rounds a startup raises from investors as it grows, each usually larger than the last.
Superannuation: Australia's compulsory retirement savings system, where employers contribute a percentage of wages to a super fund.
Underwriting: A bank or institution guaranteeing the sale of new shares or bonds, taking on the risk if they aren't fully sold.
Unicorn: A privately held startup valued at over US$1 billion.
Valuation: An estimate of what a company is worth, used when raising capital, selling, or listing on an exchange.
Venture capital: Investment funding provided to early-stage, high-growth-potential companies in exchange for equity.
Yield: The income return on an investment, such as a bond's interest payments, expressed as a percentage of its price.