Friday, 30 November 2012

Diversification

Limiting investment risk by purchasing different types of securities from different companies representing different sectors of the economy.

Dividend

The portion of the issuer's equity paid directly to shareholders. It is generallypaid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, andrecord date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.

Dividend Reinvestment Plan

A means of reinvesting dividends, which would otherwise be paid to the shareholder in cash, in additional stock of the company.

Dividend Yield

Equal to the indicated annual dividend rate per share divided by the security's price. For example, if the indicated dividend rate is $1.00 and the closing price is $50.00,$1 divided by $50.00 equals2%.

Dividend/Distribution Payable Date

The date set by the issuer on which the dividend/distribution will be paid.

Dollar Cost Averaging

Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing aconstant number of shares atset intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high.

Dow Jones Industrial Average (DJIA)

An average made up of 30 actively traded stocks. The DJIA is calculated by adding the prices of each ofthe 30 stocks and dividing by a divisor. The DJIA is one of the most widely quoted stock market averages in the media.

Downtick

A trade is on a downtick when the last trade occurred at a price lower than the previous one.

Japan unveils $11bn stimulus package

Japan's government has approved its second roundof stimulus in a little more than a month, as prime minister Yoshihiko Noda tries to pep up a flagging economy in the run-up to December's elections.
On Friday the cabinet announced that it would tap reserve funds to spendY880bn ($10.7bn) on a variety of measures, including rebuilding areas hit by the March 2011 earthquake, employment support and aid to cash-strapped small businesses. The plan is roughly double the size of a package announced in late October, which was also drawn mostly from reserves and aimed at reconstruction efforts.
The stimulus comes as Japan hovers on the brink of a technical recession, its fifth of the past 15 years, as manufacturers cut production amid a steady worsening in their sales and profit outlook. Falling exports were the main contributor to a 0.9 per cent contraction in gross domestic product between July and September, and economists are braced for another in the three months to December. Last week the government slashed its quarterly assessment of business sentiment in all 11 regions of the country -- the first clean sweep since February2009 -- blaming sluggish output and consumption.
Economic data released on Friday were a little more encouraging, showing an unexpected rise of 1.8 per cent in industrial production from September to October. Thenationwide consumer priceindex (excluding fresh food) was unchanged froma year ago, improving from five months of year-on-year declines to September.
However, with more job cuts expected in a manufacturing sector exposed to tepid demand in developed economies and an uncertain outlook in China, analysts expect renewed deflationary pressure on the world's third-largest economy.
"We are yet to see any lightout of this recession tunnel," said Takiji Okubo, principal at Japan Macro Advisors, a Tokyo consultancy.
The government fears that if the economy slips further, it could threaten plans to increase consumption tax from 2014. Provisions attached tothe legislation, passed in August, require the government to consider the overall economic situation before implementing any increase.

Australian Lynas starts up Malaysian plant

The company said in a statement that the first feed of rare earth concentrate had been fed into the kiln at the Lynas Advance Material Plant (LAMP) in Kuantan Malaysia.
The event follows controversy and delays due to strong opposition about possible health threats caused by pollution.
A Malaysian court recently dismissed anapplication by the Save Malaysia Stop Lynas group to blockLynas' operating licence, but the legal challenges are ongoing.
Lynas mines rare earths from the highly regarded Mt Weld in Western Australia, which are metallic elements used in products ranging from digital televisions, mp3 players and fluorescent light bulbs.
"This is a significant milestone for Lynas,"said Lynas executive chairman Nicholas Curtis.
"The operation of the LAMP is now a reality, and the LAMPwill provide real datathat will assure people that the LAMPis entirely safe for our local communities and theenvironment."
It is expected to take about two months before first sales of finished product and cash generation.