This section contains finance jargon from blog posts with detailed explanations.

IPO – Initial Public Offering, this the process of a private limited company turning into a public limited company and its shares are offered to public investors for purchase. This is a big step for a company because it will have access to public investors and this can allow the company to raise huge capital. This capital will allow the company to expand further.

Market Capitalisation – Commonly called Market Cap, this is how much a publicly traded company is valued. It is the total dollar market value of a company’s outstanding shares. Outstanding shares are the shares that are currently held by investors. To calculate market cap – total number of outstanding shares x share price.

Large-cap stocks – Short for large market capitalisation. These are stocks that have a market cap of more than $10 billion. They are also known as blue-chip stocks and they are well established profitable companies. These are your Apple, Amazon, Microsoft, VISA, Adobe etc.

Small-cap stocks – These are stocks that have a market cap between $300mil to $2 billion. These small cap stocks are young, fast-growing companies and can potentially offer huge returns, naturally they’re relatively riskier than mid-cap and large-cap stocks

Mid-cap stocks – These are stocks that have a market cap of between $2 and $10 billion. They sit in-between small-cap and large-cap stocks. They offer greater stability than small-cap stocks and also offer more room for growth than large-cap stocks.