BlockchainThis is a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer to peer network.
Commercial PapersCommercial papers are money market instruments issued usually by blue chip companies with great credit ratings due to its unsecured nature being an IOU essentially.
Commercial Papers issued at discountThis is when the face value on a Commercial Paper is received by the holder upon maturity, but a lesser amount is paid by the holder on purchase of the instrument.
Credit RatingA credit rating is a quantified assessment of the credit worthiness of a borrower in general terms or in relation to a particular financial obligation.
CryptocurrencyThis is a digital currency in which transactions are verified and records are maintained by a decentralized system using blockchain technology rather than by a centralized authority e.g. a Central Bank
Cryptographyis a method of codification generated with the mathematical and engineering functions to protect information or communication. The prefix “crypt” is a Greek word meaning hidden.
Due diligenceDue diligence is a comprehensive appraisal of a business undertaken to evaluate its commercial potential.
Fiat currencyThis is a government issued currency that is not backed by a physical commodity but rather by the government that issued it.
Financial Reporting periodThis is the time period covered by the financial statements. It is always stated on the financial statements. Financial statements usually cover a period of twelve months. However, for a newly commenced or a liquidating entity, the financial statements may cover a period below or exceeding the typical twelve (12) months.
Future ValueThis is what the value of an asset will be at a particular future date based on an estimated growth rate.
Growth stockThis is a share in a company that is anticipated to grow significantly over the average growth of the market.
IlliquidCannot be easily sold or converted to cash
Institutional investorAn individual or company that invests money on behalf of other people e.g. mutual funds, pensions, insurance companies.
Intrinsic valueThis is the value something has in itself.
Market CapitalizationThis is the market value of a company’s outstanding shares. It is equal to the current share price multiplied by the number of outstanding shares.
Market IndexA market index is a hypothetical portfolio of investment holdings that represent a segment of the financial market.
Maturity DateThis is the date on which the final payment is due on a loan or other financial instruments.
Minimum investmentsThe smallest specified naira or dollar or unit required to invest in a particular.
MortgageMortgage is a loan provided by an institution that enables an individual to purchase a home or property.
Present ValueThis is the current value of an asset at the now.
Permissionless transactionsThese transactions allow any computer on the Ethereum network to confirm a transaction.
Permissioned transactionsThese are transactions that are reviewed by only a select group of computers on the Ethereum network hence, their activities do not need to be exposed to all computers as long as it follows set protocols.
PortfolioPortfolio is a range of investments held by a person or an organization. It is a collection of financial investments.
Private Keyis the unique code generated to access the information protected by the public key i.e. to decrypt information.
Public Keyis used to encrypt information. The layer of security generated by cryptography.
Retained EarningsThis is the accumulated residual value of the entity after its existing assets have been used to settle its existing liabilities. This is the amount of money left to be distributed amongst the shareholders, after the external creditors have been settled, in the event of a liquidation of the entity.
Return on InvestmentReturn on investment is a profitability ratio that show how well your investment is performing. To find out your return on investment you divide your net revenue by the cost of your investment.
Risk Appetiteis the level of risk an individual or organization is willing to take.
S&P 500This is a market index that tracks the average movement of 500 of the largest companies in the U.S Economy.
Stable coinThis is a cryptocurrency whose price is backed by an underlying asset. It offers price stability while also maintaining the security and privacy of transactions.
StockbrokerStockbroker is a professional trader who buys and sells shares on behalf of clients.
Treasury BillsThese are debt instruments issued by the government to the public to finance government spending as an alternative to taxation. They are low interest-bearing debt. Treasury bills are risk free debts.
Value stockThis is a security trading at a lower price than what the performance of a company indicates. A common characteristic of a value stock is a low price earning ratio.
Volatility Rateis the degree of variation of the trading price of a currency over a period of time.
WhitepaperA whitepaper is an informative document used by a company or a not-for-profit organisation to promote a solution or service.