Cryptocurrencies are digital or virtual currencies that are based on cryptographic technologies and are generally organized on a decentralized basis. They enable direct transactions without intermediaries such as banks. Bitcoin was the first cryptocurrency. There are now thousands of other cryptocurrencies. 

A hedge fund is a specialized investment fund that aims to achieve high returns with a wide range of investment strategies – independently of whether the markets rise or fall. Hedge funds are often less regulated than traditional investment funds. 

IPO is the abbreviation for Initial Public Offering – i.e. the first public offering of shares in a company. The process is also referred to as a new issue. IPOs are one of various ways in which companies can raise capital.  

Junk bonds originate in companies or countries with poor credit ratings. With the purchase of a junk bond, you are lending money to a company that has a low rating. Because the risk of such investments is high, the corresponding interest payments are also higher than for other bonds. In short, these are bonds with high interest income and high default risk. 

A leading index is like a kind of barometer that reflects the performance of securities from different companies. The best-known Swiss index, the SMI, comprises the shares of the 20 most traded and largest companies in the country. The leading index of the Tokyo Stock Exchange, the Nikkei 225, includes the 225 most significant shares in Japan. A leading index always replicates part of a market and shows how it is performing. Indices are very suitable, for example if you want to compare stock market trends in individual countries.

Market capitalization is the current stock market value of a company and is calculated as follows: number of shares x share price = market capitalization. Incidentally, in October 2024, US tech company Apple was the most valuable company in the world in terms of market capitalization at USD 3.4 trillion.