A
Alternative Assets
Non-traditional investment assets like real estate, private equity, or collectibles.
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Arbitrage
Buying and selling the same asset in different markets to profit from price differences.
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Asset
Anything of value that can be owned or invested in, like property, stocks, or bonds.
B
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Blue-Chip Stocks
Stocks of well-established, financially stable companies with a history of reliability and growth.
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Bonds
A loan made by an investor to a government or corporation that pays interest over time.
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Buy and Hold
An investment strategy of holding assets long-term regardless of market fluctuations.
C
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Commercial Paper
Short-term, unsecured debt instruments issued by corporations to meet funding needs.
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Commodities
Physical goods like gold, oil, or agricultural products traded in markets. |
Compound Interest
Interest calculated on the initial investment plus any previously earned interest.
D
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Diaspora Bond
Bonds issued by the Nigerian government targeting Nigerians living abroad for investment.
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Diversification
Spreading investments across different assets to reduce risk. |
Dividend
A payment made by a company to its shareholders, usually from profits.
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E
Education Bonds
Bonds issued to fund educational projects, popular among Nigerian state governments.
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Endowment Funds
Investments set aside to fund nonprofit activities, commonly by Nigerian universities or religious organizations.
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Equities
Ownership interests in companies, represented by shares of stock. |
F
Fidelity Bond
Insurance protecting investors or employers from losses due to employee dishonesty or fraud.
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Fixed Deposit
A savings product offered by banks with a fixed tenure and interest rate. |
Fixed Income
Investments that provide regular payments, like bonds or savings accounts.
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G
Government Savings Scheme
Savings products backed by the Nigerian government, like the FGN Savings Bond.
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Green Bond
A bond issued to finance environmentally friendly or sustainable projects. |
Growth Stock
Stocks of companies expected to grow faster than the average market.
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H
Hedge Fund
A private investment fund that uses advanced strategies to earn returns for its investors.
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High-Yield Savings Account
A bank account offering higher-than-average interest rates, suitable for Nigerian savers.
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Hybrid Funds
Mutual funds that invest in a mix of equities, bonds, and other assets. |
I
Impact Bonds
Investments tied to measurable social outcomes, used to fund development projects in Nigeria.
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Insider Trading
The illegal practice of trading based on non-public information, strictly regulated in Nigeria.
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Insurance Premiums
Regular payments made to Nigerian insurance companies for coverage against risks.
J
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Joint Stock Company
A company owned by shareholders, popular in Nigeria for large-scale enterprises.
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Joint Venture (JV)
A partnership between Nigerian and foreign firms for shared investment in projects or businesses.
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Junk Bond
A high-risk, high-yield bond issued by companies with lower credit ratings. |
L
Leverage
Using borrowed money to increase the potential return on an investment.
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Listed Securities
Shares, bonds, or ETFs traded on Nigerian exchanges like NGX.
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Local Bonds
Bonds issued in Nigerian Naira for domestic investors.
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M
Market Capitalization
The total value of a company's outstanding shares of stock, calculated as stock price × shares.
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Microfinance Investments
Investments in microfinance institutions that provide loans to small businesses or individuals.
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Mutual Fund
A pool of money collected from many investors to invest in a diversified portfolio of stocks, bonds, etc.
N
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Naira Yield Curve
A graph showing the relationship between interest rates and the maturity of Naira-based debt instruments.
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Negative Carry
When the cost of holding an investment exceeds the income generated, relevant in Nigerian currency trades.
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Net Asset Value (NAV)The value of a mutual fund or ETF, calculated as total assets minus liabilities per share.
O
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Over-the-Counter (OTC) Market
A decentralized market for trading securities directly between parties, common for Nigerian bonds.
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Open Market Operations (OMO)
CBN's tool for managing liquidity by buying or selling government securities in the market.
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Operational Risk
Risks arising from day-to-day operations, such as fraud or system failures in Nigerian investments.
P
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Peer-to-Peer Lending
Platforms that allow individuals to lend money directly to others, bypassing traditional banks.
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Portfolio
A collection of investments held by an individual or institution. |
Portfolio Diversification
Spreading investments across various asset classes to reduce overall risk.
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Q
Quasi-Government Bonds
Bonds issued by state governments or government-backed agencies in Nigeria.
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R
Rebalancing
Adjusting a portfolio’s asset allocation to match an investor's goals or risk tolerance.
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Return
The gain or loss made from an investment, typically measured as a percentage of the initial amount invested.
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Rights Issue
Offering additional shares to existing shareholders, common in Nigerian stock market practices.
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Risk Tolerance
The degree of risk an investor is willing to take when making investment decisions.
S
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Short Selling
Selling an asset you don’t own, hoping to buy it back at a lower price to make a profit.
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Stocks
Shares of ownership in a company, which entitle the holder to a portion of the company's profits.
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Sukuk Bond
Islamic bonds compliant with Sharia law, avoiding interest payments. |
T
Tax-Free Investments
Investments exempted from taxes, such as specific bonds in Nigeria.
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Treasury Bills (T-Bills)
Short-term debt instruments issued by the Nigerian government to raise funds for up to one year.
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Treasury Bond
A government bond with a fixed interest rate and long maturity.
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U
Underwriting
The process by which an investment bank raises capital for a company by selling its securities.
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Utility Stocks
Shares in companies providing essential services like electricity and water, common in Nigerian portfolios.
V
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Value Investing
An investment strategy focused on finding undervalued assets. |
Volatility
The amount of price change an asset experiences over time; higher volatility means higher risk.
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W
Wholesale Investment
Large-scale investments made by institutional investors or wealthy individuals in Nigeria.
Y
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Yield Curve
A graph that shows the relationship between interest rates and bond maturity dates. |
