Glossary

Actuary: a person who calculates risks and premiums
Annual Return: The total return on an investment which includes dividend payments and capital.
Annuity: an investment of money entitling the investor to a series of sums over a stated period.
Bankruptcy: declared in law unable to pay debts
Beneficiary: a person who receives benefits under a trust, policy or will.
Benefits in kind: Benefits excluding salaries given to employees by employers eg car, car fuel, medical etc
Bond: a certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time.
Capital Growth: The increase in value of an asset.
Capital Structure: The components which form a company's capital (ordinary shares, preference shares, debentures etc).
Decreasing term assurance: Life insurance which decreases over the term of the policy.
Earned Income: Income that comes from work (salary, wages).
Execution Only Broker: A broker who buys and sells shares on the instructions of clients but who offers no advice.
Final Salary Scheme (Defined Benefit Scheme): A pension scheme in which an employee's pension is based on number of years of service and final salary.
Financial Adviser: A professional person qualified to give advice to clients regarding a range of financial products.
Footsie: The Financial Times 100 Share Index is a measure of Britain's top 100 companies.
Fund: A stock of money.
Fund Manager: A professional person whose role is to decide how fund money is invested.
Fund Switching: The movement of money from one fund to another.
Gain: Acquire as profits.
Hang Seng Index: The main indicator of stock market performance in Hong Kong based on 33 companies.
Health Insurance: Generic term for insurance covering costs incurred due to illness or injury.
Home Income Plan: A plan enabling the elderly owner of a property to utilise its capital value.
Index linked term assurance: Term assurance in which premiums and benefits are increased in line with a specific index.
Inheritance Tax: Tax due on an estate following the death of the owner.
Joint Life Assurance: An assurance policy usually taken out on two lives, typically husband and wife.
Lump Sum: A sum of money paid in a single installment.
Market Value: Value as a saleable thing.
Money: A current medium of exchange in the form of coins and banknotes.
NASDAQ: The first electronic stock market.
National Debt: The total debt accumulated by a government through the issue of government bonds, treasury bills etc.
Normal Retirement Age: The age at which a person normally retires.
Occupational Pension Scheme: A pension organised and managed by an organisation for the benefit of its employees
Pension Forecast: A projection of estimated pension income upon retirement.
Pension Mortgage: A pension plan which uses the lump sum to repay a mortgage.
Pension: A regular payment made to people above a certain age.
Personal Income: A person's total income.
Phased Retirement: Gradual reduction in working hours when approaching full retirement.
Quartile: The investment industry divides performance into four equal groups.
Quote: An estimate of future returns.
Registrar of Companies: The official body with responsibility for the registration of companies.
Retire: leave office or employment
Safe: Not involving danger or risk.
Sale: The exchange of a commodity for money etc.
Share: a portion of an enterprise
Stock Exchange: An association of dealers in stocks and shares, conducting business according to fixed rules.
Take home pay: The amount of money available after all deductions from salary.
Tax avoidance: The minimising of tax liability via legal activities.
Term: A specific period of time.
Testate: Having left a valid will at death.
Tokyo Stock Price Index: The index of the 1,000 largest companies quoted on the Tokyo Stock Exchange.
Tracker Fund: A fund which aims to achieve the same returns as a specific share index.
Trust Fund: A fund of money etc held in trust.
Umbrella Fund: A collective fund containing several sub-funds, each of which invests in a different asset class.
Valuation: The worth of a portfolio of investments.
Variable Interest Rate: The rate offered by an institution which is likely to fluctuate in line with the base rate.
Warrant: Securities issued by a company which give their owners the right to purchase shares in the company at a specific price at a future date.
Will: A written document usually instructing funeral wishes and how an estate  is to be distributed upon death.
Xd: Ex dividend. Xw: Ex warrants
Year End Dividend: An additional dividend paid at the end of the trading year.
Yield: The return of money.
Zero Coupon Bond: A bond which pays no interest through its life.
Zero Dividend Preference Shares: Preference shares which receive no dividend throughout their lives.

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