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Top 7 new Financial Terms given to us by 2018

In the year 2018, the financial market has been on one heck of a roller coaster ride for sure since it has experienced both highs and lows this year.  And with so many changes happening, a lot of new financial terms were introduced unknown to the majority of people. So to sum it up, here are 7 most talked about financial terms among the educated demographics that are also considered to be well versed with investment strategies. 

So here is the list of top 7 financial terms that were given you us by 2018

FAANG stocks

FAANG represents the five most popular and best performing tech stocks which are Facebook, Apple, Amazon, Netflix and Google. FAANGS was grouped together by the Wall Street to depict the collective impact these companies had on the financial market. As on march 2018, it was found that the market capitalization of all of these companies collectively summed up to $.105 trillion. The profit margin of these companies has been seen to be increasing year after year thus establishing themselves as potential stocks suitable for investing.

Capitulation

The term capitulation mostly comes up into use during the periods of decline in the financial market. Capitulation is termed as that condition in which the investors give up any previous gains in security or market when the market is tending more decline. Capitulation happens during high volume trading or when the security has been declined.

Inverted Yield curve

This is a condition in which the instrument having long term debts result into lower yield as compared to the instrument of the short term debts. This is a type of yield curve that is considered to be a predicator of recession.

Bear Hug

Bear hug is a term that denotes an offer made which is by a company to buy the shares of another company.  Also the share that is bought is usually at a much higher share price rate.

Pre Foreclosure

It is defined as that state in which a property is going to be reposed in its early stages itself due to the inability of the owner to pay mortgage obligation.  Here the owner is left with two options either to pay off the debt or sell the property.

Dow30

The Dow30 is basically an index which was developed as a means to track the market performance of the United States.  Its composition keeps on changing on a regular basis depending on the rise and fall of the stocks and industries that are represented by it.

Going Private

Going Private is a term that refers to a series of transaction that a public traded company goes through to convert into a private entity. This usually happens when the company no longer finds benefits as a public entity. This is usually decided by its stakeholders of that particular company that has decided to go private.

Thus these new financial terms have surely been the talk of the town in the year 2018 and have made significant impact in the market of finance and economy.

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