Learn to speak ‘City’

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I have previously shared my 10 rules for demystifying the stock market when going through an initial public offering (IPO). Having IPO’ed your business, the next challenge is fathoming City jargon and the old adages that stock market practitioners still adhere to.

It is better to travel than to arrive:

The market is essentially a discounting mechanism, so it is forward-looking. Good numbers can result in the share price falling as investors lock in profits; bad results can lead to a rise in the share price as investors conclude the worst is over and buy into the recovery.

In the short term, the market is a voting machine; in the long term, it is a weighing machine:

Technical matters, such as supply and demand, dictate in the short term, but fundamental, intrinsic value asserts itself in the long term.

Under promise and over deliver:

To outperform the market, company results need to exceed expectations, so good management under promises ...