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Value Stocks |
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Stocks which are perceived
to be selling at a discount to their intrinsic or
potential worth, ie undervalued; or stocks which
are out of favour with the market and are under-followed
by analysts. It is believed that the share price
of these stocks will increase as the value of the
company is recognised by the market. |
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Value-Added Monthly
Index (VAMI) |
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An index that tracks the
monthly performance of a hypothetical $1000 investment.
The calculation for the current month's VAMI is
: Previous VAMI x (1 + Current Rate of Return) The
value-added monthly index charts the total return
gained |
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by an investor from reinvestment
of any
dividends and additional interest gained through compounding.
The VAMI index is sometimes used to evaluate the performance
of a fund manager. |
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Venture Capital |
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Money and resources made available
to start-up firms and small businesses with exceptional
growth potential. Venture capital often also includes
managerial and technical expertise. Most venture capital
money comes from an organized group of wealthy investors
who seek subs tantially above average returns and who
are willing to accept correspondingly high risks. This
form of raising capital is increasingly |
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popular among new companies that,
because of a limited operating history, can't raise money
through a debt issue. The downside for entrepreneurs is
that venture capitalists usually receive a say in the
major decisions of the company in addition to a portion
of the equity. |
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Volatility |
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The relative rate at which the
price of a security or fund moves up and down. Volatility
is found by calculating the annualised standard deviation
of daily change in price. If the price of a stock moves
up and down rapidly over short time periods, it has high
volatility. If the price almost never changes, it has
low volatility. |
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