Glossary Flashcards
Active management
A type of investment approach employed to generate returns in excess of the market
Additional Rate ( Of income Tax )
Tax on top band of income, 45%
AIM
Alternative Investment Market, Junior market for smaller companies established by the LSE
Annual Equivalent Rate
The annualised compound rate of interest applied to a cash deposit or a loan. Also known as effective annual rate
Annual General Meeting
Yearly meeting of shareholders. Mainly used to vote on dividends, appoint and removal of directors and approve financial statements.
Articles of Association
The legal document which sets of the internal constitution of a company. It will details the relationship between the owners and the company and include shareholder voting rights and company borrowing powers
Authorisation
Required status under FSMA for firms that wish to provide financial services
Authorisation
Required status under FSMA for firms that wish to provide financial services
Authorised Corporate Director (ACD)
Fund manager for an OEIC
Authorised Unit Trust ( AUT )
Unit trust which is freely marketable. Authorised by the FCA
Balance of Payements
A summary of all the transactions between a country and the rest of the world. The difference between a country imports and exports.
Bank of England ( BOE )
The UK’s central bank. Implements economic policy decided by the treasury and determines interest rates.
Basic rate ( Of income tax )
Rate of tax @ 20% charged on income that is below the higher-rate threshold.
Beneficiary’s
The beneficial owners of trust property or those who inherit under a will
Bid price
The price at which dealers buy stock. It is also quoted by unit trusts that are dual priced.
