Glossary

Equity
A term that refers to shares.

IFA (Independent Financial Advisor)
As they are not connected to any particular company offering financial products, IFAs can provide unbiased information and advice regarding how to maximise your investment. Your IFA will go over your options, including alternative strategies that take into account your specific needs and personal circumstances, and offer you the best way to invest your money.

ISA (Individual Savings Account)
An ISA offers up to three options, or components, for investing. Gilts or corporate bonds, as well as stocks and shares may be selected as part of the ISA. Earnings from an ISA are currently tax-exempt. ISAs were introduced to the market in 1999, replacing TESSAs & PEPs.

Maturity
This refers to the end of a bond’s term, measured from the date of it’s purchase. A mature bond opens additional opportunities for the holder for either reinvestment or withdrawal.

Securities
These are documents that certify your stake in a company’s assets, property, profits or capital. Securities generally contain a description of the company’s obligation to you, or your shareholder rights. Bonds and equities (e.g. shares), as well as units of Mutual Funds, are all securities.

Shares
This refers to the parts of a PLC (Public Limited Company) that are available for purchase to public investors through the Stock Exchange. Buying a share is the same as buying a part of the company, and therefore gives you the right to any possible dividends made by the company.

Term
This is the defined length of time from the start of a bond to its eventual maturity.