Technical Analysis – Glossary

### Economic concepts – **Inflation**: The overall change in the consumer price index over a certain period. For example, inflation in 2016 is the overall increase in prices in the economy during 2016. – **Analyst**: A person whose job is to evaluate various companies or sectors in order to examine the feasibility of an investment. – **Black and Scholes (B&S)**: A mathematical model for estimating the theoretical value of options, developed by two American economists. – **Stakeholder**: Shareholders who hold more than 5% of the company’s shares or people in senior positions in the company. Each stakeholder must report to the stock exchange any transaction they make in the company’s securities. – **Broker**: A representative of a bank or company, authorized to make transactions on the stock exchange for other people. – **Dow Jones**: An index that includes the 30 stocks with the highest market capitalization on Wall Street (the New York Stock Exchange). – **Dividend**: Distribution of a portion of a company’s profits to shareholders. – **Venture capital**: Money invested in companies that are in the early stages of their development, usually high-tech companies. – **IPO**: The process by which a company offers its shares for sale to the public on a stock exchange in order to raise money. – **Privatization**: The sale of companies by the government to private investors. – **Underwriter**: An institution that undertakes to purchase all the shares offered by a company to the public if there is no demand for them, in exchange for a commission. – **Ex-date**: The day on which the stock is traded without additional benefits such as a dividend. – **Appreciation**: The strengthening of a currency relative to the currency of another country. – **Daily stock exchange turnover**: The total monetary value of all transactions carried out on the stock exchange on that day. – **Nasdaq**: The “over-the-counter” stock exchange in the United States, the second most important in the United States. – **Technical analysis**: A tool for predicting future stock prices by analyzing past stock prices. – **Nikkei (index)**: An index of the leading companies traded on the Tokyo Stock Exchange, Japan. – **Currency basket**: A combination of currencies from several countries to obtain a single unit of measurement. – **Devaluation**: A decrease in the value of a currency relative to the currency of another country. – **Prime interest**: Interest paid by the best customers of banks, derived from the interest rate set by the Bank of Israel. – **Bear market**: A term for a trend of falling stock prices on the stock exchange (Bear Market). – **Bull market**: A term for a trend of rising stock prices on the stock exchange (Bull Market). – **Yield**: The profit on an investment over a period of time. – **Prospectus**: A document that every company that issues securities to the public must publish, containing details Full information about the company’s condition.