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1.7 Operation Definition 
Stock market
A stock market or equity market is a public entity (a loose network of 
economic transactions, not a physical facility or discrete entity) for the trading of 
company stock (shares) and derivatives at an agreed price; these are securities listed 
on a stock exchange as well as those only traded privately. 

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Stock market return
Stock Market Returns are the returns that the investors generate out of the 
stock market. This return could be in the form of profit through trading or in the form 
of dividends given by the company to its shareholders from time-to-time. In the 
secondary market an investor could earn stock market return by buying a stock at 
lower price and selling at a higher price.
Interest rate 
An interest rate is the rate at which interest is paid by borrowers for the use 
of money that they borrow from a lender. 
SHIBOR 
The Shanghai Interbank Offered Rate.
Inflation rate 
The overall general upward price movement of goods and services in an 
economy, usually inflation rate as measured by the Consumer Price Index (CPI). 
Exchange rate 
Exchange rate (also known as the foreign-exchange rate, or FX rate) 
between two currencies is the rate at which one currency will be exchanged for 
another. It is also regarded as the value of one country’s currency in terms of another 
currency.
Real Effective Exchange Rate 
The weighted average of a country's currency relative to an index or of 
other major currencies adjusted for the effects of inflation. 
Money supply 
It’s the total amount of monetary assets available in an economy at a 
specific time. 
M2 
The money supply that includes M1 and M0 in addition to all time-related 
deposits, savings deposits, and non-institutional money-market funds. 

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