Essential Report

Understanding financial terms

Jun 23, 2015

Q. Would you say you have a good understanding, some understanding or not much understanding of the following terms?

Good understanding

Some understanding

Not much understanding

Not sure

Lot of interest in business & finance – Good understanding

Negative gearing

19%

38%

36%

7%

51%

Stocks

18%

42%

35%

6%

52%

GDP

15%

30%

46%

9%

44%

All ords

14%

30%

49%

7%

45%

Equities

11%

31%

50%

8%

40%

Options

11%

25%

55%

9%

34%

Bonds

10%

31%

52%

8%

36%

Futures

9%

24%

58%

9%

28%

FTSE

9%

22%

58%

12%

32%

Venture capital

8%

20%

61%

11%

29%

Derivatives

7%

17%

65%

10%

25%

Selling down

7%

20%

61%

11%

26%

Less than 20% have a good understanding of each finance term. The most understood terms were “negative gearing “ (19%), “stocks” (18%), “GDP” (15%) and “All ords” (14%).

The least understood were “selling down” (7%), “derivatives” (7%) and “venture capital” (8%).

Among those who said the had a lot of interest in business and finance, a bare majority said they had a good understanding of “stocks” (52%) and “negative gearing” (51%).

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