Chapter 2 - Equites, Property and Alternative Investments Flashcards
1
Q
Equities
A
- Part Ownership of a company’s capital
- Investors hopes to receive income from dividends
- Companies offer shares on the LSE
2
Q
Share prices can be affected by -
A
- Economical and political factors, such as inflation, productivity, growth and government policy
- Investor sentiment - investors may be optimistic or pessimistic
- Business specifics, such as turnover
3
Q
Share dealing markets
A
Primary - Securities are issued for the first time
Secondary - Securities traded when already issued
4
Q
AIM market
A
Smaller company shares
5
Q
Share trading costs
A
- Commission
- Stamp duty on UK shares
- 0.50% paid by purchaser
6
Q
Rental Yield
A
Gross rent / Market price
or to take into account costs:
Gross rent - expenses / Market price - cost of buying
7
Q
A
