Glossary

Broker

A licensed firm that executes your buy and sell orders.

CFD

A leveraged contract on a price; a high-risk product that many retail clients lose money on.

Diversification

Spreading money across many assets to reduce the impact of any single failure.

Dividend

A share of company profit paid to shareholders, not guaranteed.

ETF

An exchange-traded fund: a basket of assets that trades like a share.

Inflation

The general rise in prices that reduces what money can buy.

ISA

The Israel Securities Authority, the regulator of the securities market.

Keren hishtalmut

An Israeli long-term savings fund with its own tax rules.

Kupat gemel

An Israeli provident fund for long-term savings.

Leverage

Using borrowed money or contracts to magnify exposure; it magnifies losses too.

Spread

The difference between the buy and the sell price.

TA-35

Index of 35 large companies on the Tel Aviv Stock Exchange.

TASE

The Tel Aviv Stock Exchange.

Capital gain

Profit from selling an asset for more than you paid.