Common
terms & definitions
 Capital
Growth
This refers to an increase in your investment’s
value from its original price.
Dividends
A share of the profits a company
pays to its shareholders, typically once or twice a year.
Each share owned will be
paid an equivalent share of profit from the amount
set aside by
the company for dividends.
Dow Jones
The US stock exchange.
Fixed Odds Betting
This is a system that lets
you place a bet on which direction a given index such as
the stock market will be
heading. Fixed odds refers to the fixed amount that
will be
won or lost,
which is a multiple of the amount that was bet.
In other words, if
your bet was placed on the correct market direction,
you will know exactly how much you will be paid.
This also
allows you
to plan for a possible loss which is also based
on a multiple of that fixed amount.
FTSE100
The Financial Times and London Stock
Exchange list of top 100 UK companies.
Fund Supermarket
A selection of unit trusts
and OEIC managed by more than one fund director in a single
account.
Investment Trust
Companies that invests in
the shares of other companies, with the objective
of
profitability
in mind.
ISA (Individual Savings Account)
A type of savings
account that allows you to keep the interest that your
deposit earns without
having
to
pay for any associated
taxes on those earnings.
OEIC
(Open-Ended Investment Companies)
Generally, a company in
charge of handling an investment fund.
PEP (Personal Equity
Plan)
This was a savings plan available
until 1999 that allowed
for tax-exempt investments
in
securities and shares.
While previously
opened PEPs still exist,
no new ones were opened after
1999.
Spread Betting
Spread betting allows
you to earn from
both positive
and
negative movements
in the market, on a wide
selection of
financial indeces.
TESSA (Tax Exempt Special Savings Account)
A
special type of savings account
offered by
banks and building
societies until
ISAs replaced
them
after April
5, 1999. Any
money left in
a TESSA enjoyed tax exemption
for earnings
made from
interest, bonuses
or dividends.
Existing
TESSAs may be
transferred to
a TESSA-only ISA.
Unit Trusts
These are shared
investment
funds that you can
buy a stake
into by purchasing
units
in the fund
itself. |
