Glossary
Capital gain
The taxable profit an investor makes on a securities or property transaction. Capital gains tax is the name given to the tax an investor must pay on capital gains.
Capital loss
The loss, which may be offset against current or future capital gains, that an investor makes on a securities or property transaction.
Charting
A branch of the method of selecting shares known as technical analysis which uses share price charts to make buy and sell decisions.
CHESS
The system that allows the automatic transfer and settlement of ASX transactions via computer processing.
Client adviser
The individual who provides you with advice at a full service broker.
Commission
See brokerage.
Concise report
A summarised version of the annual report.
Contract note
The document a broker must issue you which describes a securities transaction. You must keep this as a record of your transaction for tax purposes.
Cumulative
Payments on an income security are cumulative if any missed payments need to be made up in future.
Cyclicals
Companies where sales and profits rise and fall in a regular although not necessarily a predictable fashion. These companies are typically hostage to the economic cycle. One of Peter Lynch's six categories of stocks.
