Personal Financing: is the ability of an individual to provide funds in order to achieve personal goals.

 

Investment: the action or process of investing money for profit.

 

Capital: wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

 

Capital growth: is when an asset increases in value over a period of time.

 

Income generation: is the interest, dividends or returns received on an investment. Investors assess the dividend paid on shares by measuring the ‘yield’. The yield is calculated by dividing the current annual dividend per share by the current price of

the share. This gives the investor the return earned on the investment.

 

Ready reckoner: is a book or table listing standard numerical calculations or other kinds of information presented formulaically.

 

Franked dividends: are dividends paid out of profits earned by the company and on which the company has already paid tax. Therefore, the investor s not taxed again when dividends are paid out of these taxed profits.

 

Inflation: a general increase in prices and fall in the purchasing value of money.

 

Equity: stocks and shares that carry no fixed interest.

 

Collateral: something pledged as security for repayment of a loan, to be forfeited in the event of a default.

 

Capital gain: a profit from the sale of property or an investment.