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
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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
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3
Q

Share dealing markets

A

Primary - Securities are issued for the first time
Secondary - Securities traded when already issued

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4
Q

AIM market

A

Smaller company shares

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5
Q

Share trading costs

A
  • Commission
  • Stamp duty on UK shares
  • 0.50% paid by purchaser
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6
Q

Rental Yield

A

Gross rent / Market price

or to take into account costs:

Gross rent - expenses / Market price - cost of buying

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7
Q
A
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