Page numbers in bold indicate glossary entries.
‘A’ shares
AAA rated debt
abandon
abnormal return (residual return)
absolute return funds
accountant’s long-form report
accounting exceptionalism
accounting policies
accounting rate of return
accounting standards, 2nd
accounting trade
assets in investee companies, missing
capitalisation
depreciation
exceptional items
fair value
goodwill
off-balance-sheet items
profits in investee companies, missing
revenue
share (stock) options
stock (inventory) valuation
tricks, other
accounts payable. See trade credit
accounts receivable. See debtors
accumulation (Acc) units, 2nd
ACD. See Authorised Corporate Director
acid test (quick ratio), 2nd
acquisition. See mergers; takeovers
actively managed funds, 2nd, 3rd
activist strategy, 2nd
actual expenditure
actuary
adjusted earnings per share. See headline earnings per share
administered prices
administration
costs
admission document, for Alternative Investment Market (AIM), 2nd
advanced fee scam
ADVFN, 2nd, 3rd, 4th
advisers, 2nd
advisory dealing service
advisory portfolio management
advisory service, 2nd
affirmative covenants, 2nd
agency
aggressive shares
AGM. See annual general meeting
AIC. See association of investment companies
AIM. See Alternative Investment Market
airlines industry
AITF. See Announcing the Intention to Float Day
AJ Bell data
alerts
Alexander McQueen
all-paper deal
Allied Carpets
allocation of capital (or resources)
allocational efficiency of markets
allotment
allowance. See tax allowance
alpha (alpha coefficient α), 2nd
alternative investment
Alternative Investment Market (AIM), 2nd, 3rd, 4th, 5th
admission document for, 2nd
flotation versus one on Official List
venture capital trusts
AMC. See annual management charge
American Depositary Receipts, 2nd
American-style options, 2nd
amortisation/amortised, 2nd, 3rd
analyst
angel. See business angel
angel network events
announcement day
Announcing the Intention to Float Day (AITF)
annual bonus, 2nd
annual equivalent rate (AER). See annual percentage rate
annual exempt amount, 2nd
annual general meeting (AGM), 2nd, 3rd, 4th
annual management charge (AMC), 2nd
annual percentage rate (APR)
annual profit
annual results
annual review and summary financial statement
annuity, 2nd
annuity due
appropriable resources, 2nd
APR. See annual percentage rate
arbitrage, 2nd
arbitration
Arnold, Martin
arrangement fee
articles of association
Asos
asset allocation
asset-backed securities. See securitisation
asset backing, 2nd
asset class
asset liquidity
asset lock-up, 2nd
asset securitisation. See securitisation
asset stripping
asset transformers, 2nd
assets
in investee companies, missing
limits on disposal of
underlying
assets-available-for-sale
assets held for trading
assets-held-to-maturity
associated company
association of investment companies (AIC)
Aston Martin
asymmetric information
at best, 2nd
at-the-money option, 2nd
Athena Capital Research
Attitude, in TRRACK system
attribute markets
audit committee, 2nd
auditors, 2nd
report
Authers, John, 2nd
authorised but unissued ordinary share capital
Authorised Corporate Director (ACD), 2nd
authorised fund
authorised participants, 2nd
authorised share capital, 2nd
authorised unit trusts (AUTs), 2nd
AUTs. See authorised unit trusts
avoiding tax
B rated debt
Baa3 rated debt
back office
backwards integration
bad debts
balance sheet (statement of financial position), 2nd, 3rd, 4th, 5th
ballot
bancassurance
bank account
bank covenant. See covenant
bank of England
bankruptcy
bargain
barriers to entry, 2nd
Bartosik, Paul
base rate
basic earnings per share, 2nd
basic low-cost SIPPs, 2nd
basic sum assured
basis point (bp)
BBB rated debt
bear
bear fund
bearer bonds, 2nd
bed and breakfasting shares, 2nd
bed and ISA, 2nd
bed and SIPP, 2nd
bed and spousing
Beioley, Kate, 2nd
bells and whistles
benchmark index
beneficial owner
best execution
best practice
beta, 2nd
bets
BHP Billiton
BIC Pen Corporation
bid-offer
bid-offer spread (‘bid-ask spread’ in the US), 2nd, 3rd
bid premium, 2nd
bid price, 2nd, 3rd, 4th, 5th
bid yield
bids
defence tactics
post-bid
pre-bid
websites
Big Bang, 2nd
bill of exchange
BIMBO. See buy-in management buy-out
binary bets
Binham, Caroline
Black Monday
blue chips, 2nd
board of directors, 2nd
Bocci, Claudio
boiler room scam, 2nd
bond covenant. See covenant
bonds, 2nd, 3rd
convertible
corporate
credit rating
dealers
Eurobonds
for financing mergers
foreign
gilts
high-yield (junk), 2nd
insurance company
prices, redemption yields and
See also shares
bonus issues
book-building, 2nd
book-to-market ratio (book-equity to market-equity ratio), 2nd
book value, 2nd, 3rd
bootstrapping game (price-earnings ratio game), 2nd
borrowing
borrowing capacity
bottom fishing
‘bottom line’ figure, 2nd
bottom up
Boucheron
bought deal, 2nd
bourse, 2nd
branding, 2nd
break-even analysis
break-even points
break-out
break-up value, 2nd
BrewDog
broker/brokerage, 2nd, 3rd, 4th
corporate, 2nd, 3rd
fees
investment clubs
regulation of
retail
transferring shares without
broker-dealer
broking account
bubble
bubble stock
budget (national)
Buffett, Warren, 2nd, 3rd, 4th, 5th, 6th, 7th
building society
bulge bracket
bull
bull market
bulldog, 2nd
bullet bonds, 2nd
bulletin boards, 2nd
Burberry
business angel (informal venture capitalist), 2nd
crowdfunding
points for investors concerning
websites for finding
business review, 2nd
business risk
buy-and-hold investor, 2nd
buy-in management buy-out (BIMBO)
buy-side
buyer (customer) power
buyers’ strike, 2nd
buyer-seller relationships
buying
futures
gilts
unit trusts
BVCA (British Private Equity and Venture Capital Association)
C rated debt
CAC, 2nd
Cadbury
report
call-back feature
call option, 2nd
holders/buyers
writers
call provision
called-up (issued) share capital, 2nd
Campbell, Peter
cap
Capabilities, in TRRACK system
CAPE. See cyclically adjusted price/earnings ratio
capex. See capital expenditure
capital, 2nd, 3rd
high costs
and reserves
capital asset pricing model (CAPM)
capital budgeting
capital expenditure (capex)
capital gain, 2nd
capital gains tax (CGT), 2nd
example
reducing, tips on
capital gearing, 2nd
capital growth
capital lease. See finance lease
capital markets, 2nd
capital protection funds
capital restructuring (reconstruction)
capital shares, 2nd
capital structure, 2nd
capitalisation/capitalised, 2nd, 3rd, 4th
capitalisation factor
capitalisation issues (scrip issues), 2nd
capitalisation rate
capitalists
CAPM. See capital asset pricing model
capped bonds
Carillion
carry-back the investment
carry-forward losses
cartel
cash
for financing mergers
focusing on
cash bet
cash calls
cash cow
cash dividend
cash flow statement, 2nd
from financing activities
from investing activities
from operating activities
cash fund
cash ISAs
‘cash settled,’, 2nd, 3rd
Cass Business School
Caterpillar
causal ambiguity, 2nd
CBOE. See Chicago Board Options Exchange
Cboe Europe equities
CBOT. See Chicago Board of Trade
CCP. See central counterparty
CD. See certificate of deposit
central bank
central counterparty (CCP), 2nd, 3rd, 4th
central securities depository (CSD)
CEO. See chief executive officer
certificate of deposit (CD), 2nd
CFDs. See contracts for difference
CFO. See chief financial officer
CGT. See capital gains tax
chairman’s statement, 2nd
changes in foreign exchange rates
CHAPS (Clearing House Automated Payment System)
charges for investing
charges for unit trusts
annual management charge
exit charges
initial charge
ongoing charges
other deductions not included in ongoing charges
charitable gifts, tax-efficient
Charles Stanley
chartism
charts
chasing the trend
Chicago Board of Trade (CBOT)
Chicago Board Options Exchange (CBOE)
chief executive officer (CEO), 2nd
chief executive’s review
chief financial officer (CFO), 2nd
Chinese walls, 2nd
churn, 2nd
Ciesielski, Jack
circle of competence
City Code on Takeovers and Mergers, 2nd
City of London
City of London Police, 2nd
City Panel on Takeovers and Mergers, 2nd
City, the (Square Mile)
Clare, Andrew
clawback, 2nd
clean prices, 2nd
clearing a trade, 2nd
clearing bank
clearing house. See central counterparty
client-relationship management
closed-end funds, 2nd, 3rd
closed out contracts
closet indexing (closet tracking), 2nd, 3rd
closing out a futures position
Clubfinance
CMA. See Competition and Markets Authority
CMCs. See complaints management companies
CME
Coca-Cola, 2nd
Cochrane, Thomas
codes, 2nd, 3rd, 4th
collateral, 2nd
collective funds. See pooled funds
collective investment
performance, comparing
See also pooled investments
Combined Code of Corporate Governance
commercial banking
commercial bill (bank bill or trade bill)
commercial paper (CP), 2nd
commission, 2nd
commission costs
commitment fee
commoditised, 2nd
commodity futures trading
commodity product
common stocks, 2nd
companies
information on, finding
regulation of
websites
Companies Acts, 2nd
Companies House, 2nd, 3rd
company accounts
auditors’ report
business review
cash flow statement
chairman’s statement
chief executive’s review
directors’ report
financial review
five-year summary
interpreting, confidence in
key elements of
profit and loss account
reading, necessity of
report and
scepticism when examining
statement of financial position
trading statements
company registrar. See registrar
company secretary, 2nd
comparative advantage
competence, honesty and
Competition and Markets Authority (CMA), 2nd, 3rd
competitive advantage (edge)
competitive floor, 2nd
competitive forces (Porter’s framework)
competitive position
competitors, equally balanced
complaints management companies (CMCs)
complementary products, 2nd
compliance
compliance officers
compound interest, 2nd
compound return
compounding
computer system, LSE, 2nd
concentration
concert party, 2nd
conglomerate
conglomerate bank
conglomerate merger, 2nd
Connolly, Patrick
consideration
consistency
consolidated (group) accounts, 2nd
consolidated balance sheet
consolidation of shares, 2nd
consumer price index (CPI)
continuing obligations, 2nd
continuing operations
continuity
continuous order book
contract note, 2nd
contracts for difference (CFDs), 2nd
contrarians
controlling shareholder
convergence
conversion premium, 2nd
conversion price, 2nd
conversion ratio, 2nd
conversion value
convertible bonds, 2nd
for financing mergers
convertible loan stock. See convertible bonds
convertible preference share/stock, 2nd
Cornish, Chloe
corporate acquisition, 2nd
corporate advisers
corporate bonds, 2nd, 3rd, 4th
covenants
debentures
deep discounted bonds
for financing mergers
floating rate notes
loan stocks
repayments
trading in
trust deeds
corporate brokers, 2nd, 3rd
corporate finance department of investment banks, 2nd
corporate governance, 2nd
corporate raider
corporate social responsibility (CSR)
corporate venturing
corporation tax
correction
correlation
correlation coefficient
cost leadership strategy
cost of capital
cost of sales, 2nd
costs for investor
counterparty
counterparty risk, 2nd
coupon, 2nd
See also dividend(s)
covariance
covenants, 2nd
cover
covered call option writing, 2nd
covered warrants, 2nd
CP. See commercial paper
CPI. See consumer price index
creation units of ETF shares
creative accounting, 2nd
credit
credit period
credit rating, 2nd
credit risk, 2nd
credit risk premium
credit union
creditors, 2nd, 3rd
CREST/Crest, 2nd, 3rd
critical resources
crowd financing
crowd sourced capital
crowdfunding (crowdsource)
crown jewels defence, 2nd
cryptocurrency
CSD. See central securities depository
CSR. See corporate social responsibility
cum-dividend (cum-coupon), 2nd, 3rd
cum-rights, 2nd
Cummings, Kevin
cumulative
cumulative preference share, 2nd
Cunningham, Anna
currency swap. See swap
current asset value (net)
current assets, 2nd
current liabilities, 2nd
current market value
current ratio, 2nd
current yield (flat yield, income yield or running yield), 2nd
custodian/custody
custodian fees
customer (buyer) power
cyclical companies (or industries, or shares)
cyclically adjusted price/earnings ratio (CAPE)
D rated debt
Daft, Douglas
daily funded bets
daily official list (DOL)
See also SEDOL
dark pool
darling
data, financial, 2nd
dated gilts
dawn raid, 2nd
DAX 30 (Deutscher Aktien Index)
day trader
de Berenger, Charles
dead cat bounce
dealing-only service, 2nd
debentures, 2nd
debt capital
debt issuance, limits on
Debt Management Office (DMO), 2nd, 3rd
debt maturity
debt portion
debt rating, 2nd
debt restructuring
debt-to-equity ratio
debtor conversion period
debtors (accounts receivable), 2nd, 3rd
decentralisation (fund management)
declaration day
declining (reducing) balance method of depreciation, 2nd
deep discounted bonds, 2nd
deep discounted rights issue, 2nd
deep (depth) financial markets
default
defence tactics
defensive industries
defensive shares
deferred ordinary shares
deferred payment for financing mergers
deferred tax
defined benefit
defined contribution
defined-return bonds
demanded resources
dematerialisation, 2nd
demerger
demographic change
depletion
depositary, 2nd
depositary receipts (DRs), 2nd, 3rd
depository
depreciation, 2nd
declining balance method of
EBITDA
goodwill and other intangibles
profit and loss account
straight-line
derivatives
and options
Deutsche Börse, 2nd
Deutsche Telekom
development capital
developmental funding
differentiated product
differentiation, 2nd, 3rd
diluted earnings per share, 2nd
dilution
dilution levy
diminishing marginal attractiveness, 2nd
direct foreign investment
direct investment
direct market access (DMA), 2nd
directors
dealings, 2nd
report, 2nd
dirty price, 2nd
disclosure of shareholdings, 2nd
discount, 2nd
to net asset value, 2nd
rate
discounted cash flow
discounting, 2nd
discretionary service, 2nd
disintermediation
disinvest
Disney, 2nd, 3rd
disposal of assets, limits on
distributable profits
distribution bonds, 2nd
distribution channels, access to
distribution costs
distribution units. See income (inc) units
diversifiable risk. See unsystematic risk
diversification, 2nd
divestiture (divestment)
dividend(s), 2nd, 3rd, 4th
announcement day
changes in
cum-dividend
data on, downloading
defined
ex-dividend date
execute day
final
getting paid for
interim
preliminary results
quarterly
record date
tax on
total
dividend cover, 2nd
dividend discount model. See dividend valuation models
dividend level
dividend payment ratio (payout ratio)
dividend per share, 2nd
dividend policy
dividend reinvestment plan (DRIP)
dividend valuation models (DVMs), 2nd
dividend yield, 2nd
divorce of ownership and control
DIY investing. See do-it-yourself investing
DJIA share index. See Dow Jones Industrial Average share index
DMA. See direct market access
DMO. See Debt Management Office
do-it-yourself (DIY) investing
DOL. See daily official list
domestic bond, 2nd
Dorcaster
Dow Jones Industrial Average (DJIA) share index, 2nd, 3rd
Dow theory
drawdown (pension) (income drawdown)
drawdown arrangement
DRIP. See dividend reinvestment plan
DRs. See depositary receipts
dual capital trusts, 2nd
dual-class
due diligence, 2nd
durable good
durable resources
DVMs. See dividend valuation models
dynamic approach
e-money
e-money institutions
early-stage capital
early-stage funding
earn-outs, 2nd, 3rd
earning power
earnings
earnings before interest, taxation, depreciation and amortisation (EBITDA), 2nd
interest coverage ratio
earnings guidance
earnings multiple. See price-earnings ratio
earnings per share (EPS), 2nd, 3rd
earnings yield, 2nd
EBIT
EBITDA (earnings before interest, taxation, depreciation and amortisation), 2nd
interest coverage ratio
ECN. See electronic communication network
economic change
economic deterrence
economic franchise, 2nd
economic profit
economies of scale, 2nd, 3rd
economies of scope, 2nd
The Economist, 2nd
Edwards, Hugh
efficient stock market
EGM. See extraordinary general meeting
EISs. See enterprise investment schemes
electronic communication network (ECN)
electronic platform/trading system
electronic settlement
Eley, Jonathan, 2nd
emerging markets, 2nd
emotional barriers
empire building
employee share ownership plans (ESOPs), 2nd
EMS. See exchange market size
EMU. See European Monetary Union
endowment policies (saving schemes), 2nd
enfranchisement
enterprise investment schemes (EISs), 2nd, 3rd, 4th
enterprise value, 2nd
to EBITDA ratio
entrepreneur
entry, threat of
EPIC code (Exchange Price Information Code), 2nd, 3rd
EPS. See earnings per share
equilibrium in markets, 2nd
equities/equity/equity capital, 2nd, 3rd, 4th
versus gilt
return on
statement of changes in
equitisation
equity earnings
equity index futures
equity indices
equity issues, other
acquisition for shares
bought deal
open offers
placings
vendor placing
equity kicker (sweetener), 2nd
equity-linked bond, 2nd
equity long/short
equity portion
equity risk premium
equity shareholders’ funds. See shareholders’ funds
equity warrant. See warrants
Escape Hunt
ESOPs. See employee share ownership plans
ETCs. See exchange traded commodities
ETFs. See exchange traded funds
ethical investment
Euribor (Euro Interbank Offered Rate)
Euro
Euro Car Parts
Euro-commercial paper. See commercial paper
Euro medium-term notes (EMTN). See medium-term note
Euro-security markets
Eurobonds, 2nd, 3rd
Euroclear
Eurocurrency
Eurocurrency banking
Eurodollar
Euromarkets
Euronext, 2nd
European central counterparty
European Monetary Union (EMU)
European-style options (European options), 2nd
Eurosterling bond
Eurozone
evading tax
Evans, Judith
event risk, 2nd
ex-ante
ex-coupon
ex-dividend, 2nd, 3rd
ex-dividend date
ex-post
ex-rights, 2nd
ex-rights price of a share, 2nd
exceptional items, 2nd, 3rd
exchange controls
exchange market size (EMS), 2nd
exchange of bonds
Exchange Price Information Code. See EPIC code
exchange rate
exchange rate risk, 2nd
exchange traded commodities (ETCs), 2nd, 3rd
exchange traded funds (ETFs), 2nd, 3rd
innovation
pros and cons of
exchange trading
exchangeable bond, 2nd
exclusive franchise. See economic franchise
execute and eliminate order, 2nd
execute day
execution-only broker
execution-only service, 2nd
executive directors
exercise price (strike price), 2nd
exercised, option to purchase
exit
exit barriers, 2nd
emotional barriers
fixed costs of exit
government and social barriers
specialised assets
strategic loss
exit charges, 2nd
exit date
exotic
expansion capital
expansion funding
expected return
experience
experience curve
expert investor
expiry date of an option
explicit knowledge
exposure
external finance
extraordinary general meeting (EGM), 2nd, 3rd
extraordinary resources, 2nd, 3rd
appropriability
demanded
scarcity
extrapolate
face value. See par value
Faculty and Institute of Actuaries
fair game, 2nd
fair value (fair market value), 2nd, 3rd, 4th
fallen angel
fallen angel risk, 2nd
fat-finger trades, 2nd
FCA. See Financial Conduct Authority
FD. See finance director
fill or kill order, 2nd
final dividend, 2nd
finance director (FD)
finance house
finance lease (capital lease, financial lease or full-payout lease), 2nd
financial assets (securities, instruments or financial claims), 2nd
financial binary bets. See binary bets
Financial Conduct Authority (FCA), 2nd, 3rd, 4th, 5th, 6th, 7th
grievances
rules enforced by, 2nd
financial data, 2nd
financial distress
financial gearing (leverage). See gearing (financial gearing)
financial health ratios and measures
current ratio
gearing (leverage)
quick ratio
financial institutions
asset transformers
insurance companies
investment banks
pension funds
risk spreaders
financial leverage
financial misconduct
Financial Ombudsman Scheme (FOS), 2nd, 3rd, 4th, 5th
financial pages
dividend cover
dividend yield
enterprise value
market capitalisation
market to book ratio
net asset value (book value)
payout ratio
price-earnings ratio
retention ratio
Financial Policy Committee
financial ratios
Financial Reporting Council (FRC)
financial review, 2nd
financial risk
Financial Services and Markets Act
Financial Services Compensation Scheme (FSCS), 2nd, 3rd, 4th, 5th, 6th
financial services professionals, protection from wayward
financial slack
Financial Times, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, 12th, 13th, 14th, 15th, 16th, 17th, 18th
financial websites
Alerts button
bulletin boards
Charts button
company’s website
directors’ dealings
financial data
home screen
Level 2 (or Level II) prices
Monitor button
News button
newspaper website
Portfolio button
prices
Recent News section
specialist
Toplists button
Trades button
financing activities, cash flows from
financing gap
financing mergers
cash
other types of finance
shares
firm, competitive position of
extraordinary resources
investment in resources
leveraging resources
over-exploiting resources
TRRACK system
firm prices, 2nd
first-round financing
Fitch
five-year summary
fixed assets (non-current assets), 2nd
fixed charge, 2nd
fixed costs, 2nd
of exit
high
fixed exchange rate
fixed-interest securities, 2nd
fixed-odds trading
fixed price
fixed-rate borrowing (fixed interest)
flat yield. See yield
Fletcher, Laurence
float (for insurance companies)
floating charge, 2nd
floating exchange rate
floating-rate bond. See variable-rate bond
floating-rate borrowing (floating interest)
floating-rate notes (FRNs), 2nd
Flood, Chris
flotation, 2nd, 3rd
AIM flotation versus one on Official List
introduction
methods of
offer for sale
reverse takeover
Footsie™, 2nd
Ford, Jonathan, 2nd, 3rd
foreign banking
foreign bonds, 2nd
foreign exchange control
foreign exchange (forex or FX) markets
foreign exchange rates, changes in
Fortado, Lindsay
forward (prospective) PER, 2nd, 3rd
forward agreements, 2nd
forward basis, 2nd
forward-looking measures
dividend valuation model
intrinsic value
forward-rate agreement (FRA)
FOS. See Financial Ombudsman Scheme
founders’ shares
FRA. See forward-rate agreement
France Telecom
fraud
FRC. See Financial Reporting Council
free cash flow, 2nd
free equity
free float (free capital)
free plus
friendly merger
Friendly Society
FRNs. See floating-rate notes
front-end charge, 2nd
front-end load
frontier markets, 2nd
FRS 3 earnings. See basic earnings per share
FSCS. See Financial Services Compensation Scheme
FTSE 100 index, 2nd, 3rd
FTSE 250 index, 2nd
FTSE 350 index, 2nd
FTSE AIM All-Share, 2nd
FTSE All-Share index (the All-Share), 2nd
FTSE All-Small, 2nd
FTSE Fledgling, 2nd
FTSE International
FTSE 100
FTSE 250
FTSE 350
FTSE AIM All-Share
FTSE All-Share
FTSE All-Small
FTSE Fledgling
FTSE SmallCap
FTSE Russell
FTSE SmallCap index, 2nd
FTSEurofirst, 2nd
full accrual price
full-payout lease. See leasing; finance lease
full price (bonds). See dirty price
full self-invested personal pensions, 2nd
fully automated trading. See real-time dealing
fully paid
fund management
fund managers
fund of funds
fund platform. See platform
fund supermarkets. See platform
fundamental analysts
funding. See venture funding
Funding Circle
fundraising
fungible
future basis
futures, 2nd
buying
defined
equity index futures
margins, 2nd
marking to markets
selling
settlement
futures-based bet, 2nd
FX
GAAP (generally accepted accounting principles)
Galbraith, J. K.
GDP (nominal, real)
GDRs. See global depositary receipts
gearing (leverage), 2nd, 3rd, 4th
gearing (financial gearing), 2nd
gearing (operating gearing)
Gem of Tanzania, story of
GEMMs. See gilt-edged market makers
general inflation
general insurance, 2nd
generalist venture capital trusts
generally accepted accounting principles (GAAP)
GIBs. See guaranteed income bonds
Gillette
gilt-edged market makers (GEMMs), 2nd
gilts (gilt-edged securities), 2nd
buying
capital gains tax
cum-dividend
equities versus
ex-dividend
index-linked gilts
prices
quotes
returns
selling
yield
GKN
global depositary receipts (GDRs), 2nd
globalisation
go public
goal congruence
going concern
going long, 2nd
going public, 2nd
See also new issues
going short. See short selling
golden handcuffs
golden parachutes, 2nd
golden shares
good for the day, 2nd
good till cancelled, 2nd, 3rd
goodwill, 2nd
Google
Gotrocks and Helpers
government
barriers
legislation and policy
Gowex
grace period
Graham, Benjamin
views on risk
graphene investment’ schemes
Gravy algorithm
greater fool investing
Greenhalgh, Hugo
greenmail, 2nd
greenshoe
grey knight
grey market
gross dividend yield
gross domestic product. See GDP
gross margin. See gross profit margin
gross profit
gross profit margin (gross margin), 2nd, 3rd
gross redemption yield (gross yield to redemption), 2nd
group accounts, 2nd
group balance sheet
growth capital funding
growth funds
growth industries
growth stock
guaranteed equity bonds, 2nd
guaranteed income bonds (GIBs)
guaranteed loan stock (bond)
Gucci
Guthrie, Jonathan, 2nd
haircut
half-yearly report. See interim report
Hammer software
Hang Seng index
hard currency
Hargreaves Lansdown
Hayley, Simon
head and shoulders formation
headline (underlying, adjusted or normalised) earnings per share, 2nd
Healthcare Locums
hedge/hedging
funds, 2nd
using share options to reduce risk
Heinz
Her Majesty’s Revenue and Customs (HMRC), 2nd
Herstatt risk
Hertz
HFT. See high-frequency trading
high capital costs
high fees, significance of
high-frequency trading (HFT)
High Growth Segment
high watermark
high-yield bonds, 2nd
high-yield debt. See junk bonds; mezzanine finance
high-yield shares (yield stocks, high yielder), 2nd
higher yield stocks
hire purchase (HP)
historic basis
historic price
historical (trailing) PER, 2nd, 3rd
historical figures
historical price-earnings ratio (PER). See price-earnings ratio
HMRC. See Her Majesty’s Revenue and Customs
holding company, 2nd
holding period returns
Hollinger, Peggy
home screen
Honda
horizontal merger
hostile bid battle
hostile merger
hot shares/sectors
HP. See hire purchase
hubris, 2nd
Hughes, Penny
Hughman, John
Hungerford, Nick
hurdle rate
hybrid finance
IBM, 2nd
ICE (Intercontinental Exchange), 2nd
ICE Clear Europe
ICE Futures Europe
put options
share options
iceberg order
ICMA. See International Capital Market Association
ICs. See investment committees
“ideas factory,”
idiosyncratic risk
IFAs. See independent financial advisers
IFISAs. See innovative finance ISAs
IFRS. See International Financial Reporting Standards
IHT. See inheritance tax
IKEA
imitation, risks associated with
immediate-experience goods
immediate solvency
impact day, 2nd
impairment
impatience to consume
imperfect hedge
in-house share trading
in-the-money option, 2nd
inactivity fees
income, importance of
income drawdown (pension). See drawdown (pension)
income funds
income gearing (income leverage), 2nd, 3rd
income reinvested
income shares, 2nd
income statement. See profit and loss account
income (Inc) units (distribution units), 2nd
income yield. See yield
incorporation
incumbency
independent complaints scheme, 2nd
independent director
independent financial advisers (IFAs), 2nd
independent variables
index (or indices). See market index
index funds
index huggers, 2nd
index-linked stocks (gilts), 2nd
index options, 2nd
index trackers (indexed funds), 2nd
indicative offer. See virtual bid
Individual Savings Account (ISA), 2nd
industries, analysing
airlines industry
buyer (customer) power
competitive floor
competitive forces (Porter’s framework)
dynamic approach
industry evolution
rivalry of existing companies, intensity of
steel production
substitutes, threat from
supplier power
threat of entry
industry attractiveness
industry evolution
economic change
government
learning
social change
technological change
industry growth, slow
industry structure
inevitable
inflation, 2nd
inflation-linked
inflation risk, 2nd, 3rd
informal venture capitalist. See business angel
information
information asymmetry. See asymmetric information
informed investors
inheritance tax (IHT), 2nd
inherited estates. See orphan assets
initial charge (sales charge, front-end charge), 2nd
initial margin, 2nd, 3rd
initial public offering (IPO), 2nd, 3rd, 4th
See also new issues
innovative finance ISAs (IFISAs), 2nd
inside the quote
insider dealing, 2nd
insider trading (dealing)
insolvent
Institute of Actuaries
institutional imperative
institutional neglect
institutional shareholder committee
institutionalisation
instrument
insurance companies
insurance company bonds, 2nd
intangible assets, 2nd
intelligent speculation
interbank brokers
interbank market
Intercontinental Exchange. See under ICE
interest, simple/compound
interest-bearing instruments
interest cover, 2nd
interest rate risk
interest rate swap. See swap
interest-withholding tax. See withholding tax
interest yield. See yield
interim bonus, 2nd
interim dividends, 2nd, 3rd
interim management statement (trading update), 2nd
interim payment. See interim dividend
interim profit statement
interim report (statement), 2nd
intermediaries offer, 2nd
intermediate debt. See junk bonds; mezzanine finance
internal finance
internal rate of return (IRR)
international bonds
International Capital Market Association (ICMA), 2nd
international comparison of investment rewards
International Financial Reporting Standards (IFRS), 2nd, 3rd, 4th, 5th
international indices
Japan
other
US
Internet dealing
intraday (cash or spot) bet, 2nd
intrinsic value, 2nd, 3rd, 4th
introduction
in flotation
inventory. See stock
inventory (stock) valuation
inverse exchange traded funds, 2nd
investee companies, missing profits and assets in
investing abroad. See overseas shares
investing activities, cash flows from
investing charges
investment
bonds
capital structure
capitalists
dividends
financial institutions
fixed assets displayed under
future value of shares
limited liability
overview of
partnerships
primary and secondary markets
in resources
retained earnings
returns of shares
rights issues
selling shares
shareholder rights
shares, defined
speculation and
stocks
investment, rewards of
equities versus gilts
income, importance of
interest, simple/compound
international comparison
investors, past success of
millionaire, becoming
risk
investment banks, 2nd
investment clubs, 2nd
bank account
brokers
setting up
tax
unit valuation system
investment committees (ICs)
investment grade debt, 2nd
investment-linked insurance plans
Investment Management Association
investment operation
investment platform. See platform
investment trusts (investment companies), 2nd, 3rd
borrowing
costs for investor
discounts
dividends
premiums
split-capital investment trusts
tax
websites
yields
investor protection
authorisation
companies, regulation of
compensation
complaints, steps to take
financial services professionals, protection from wayward
markets, regulation of
monitoring
scams
self-protection
investors
costs for
past success of
Investors Chronicle, 2nd, 3rd
invoice
invoice price. See dirty price
IOU
IPO. See initial public offering
IRR. See internal rate of return
irredeemable (perpetual)
irredeemable bonds
irredeemable preference shares
ISA. See Individual Savings Account
iShares
ISIN number (International Securities Identification Number)
issued share capital, 2nd
issuing house. See sponsor
Japan indices
joint stock enterprise
joint venture
junior debt (junior security). See subordinated debt
junk bonds, 2nd, 3rd
Kay, John, 2nd
Kellogg
key investor information document (KIID), 2nd
key performance indicators (KPIs), 2nd
kick-out plans, 2nd
kicker. See equity kicker
Kier Group
KIID. See key investor information document
Knight, Phil
Knowledge, in TRRACK system
KPIs. See key performance indicators
Landucci, Riccardo
Lang Cat
large economies of scale
Lawson, Adam
LBO. See leveraged buy-out
LCF
LCH
lead manager
lead steer
learning
leasing
Leeson, Nick
legislation, government
“letter of deadlock,”
Level 2 data (Level II), 2nd
leverage. See gearing
leveraged buy-out (LBO), 2nd
leveraged exchange traded funds
leveraged recapitalisation
leveraging resources
Levis
Lewis, Jeannine
liability(ies), 2nd, 3rd
LIBOR. See London Inter-Bank Offered Rate
life insurance or life assurance
lifestyle pension fund, 2nd
Lifetime ISA (LISA), 2nd, 3rd
LIFFE. See London International Financial Futures and Options Exchange
limit order, 2nd
limited company (Ltd)
limited liability, 2nd
limited life venture capital trusts
liquid market
liquid ratio. See quick ratio
liquidation
liquidity, 2nd
liquidity risk, 2nd
listed companies, 2nd
listed private equity (LPEQ), 2nd
listing agreement
listing particulars. See prospectus
listing rules
litigation
Lloyd’s Insurance Market
LME. See London Metal Exchange
loan stocks, 2nd
local authority deposits
London Inter-Bank Offered Rate (LIBOR), 2nd
London International Financial Futures and Options Exchange (LIFFE), 2nd
London Metal Exchange (LME)
London Stock Exchange (LSE)
Alternative Investment Market (AIM)
Big Bang
computer system, 2nd
firm prices
history of
Main Market (The Official List), 2nd, 3rd
market makers
market regulation
NASDAQ OMX
NEX Exchange
pricing, supply and demand and
primary market
recent moves
secondary market
securities traded, variety of
SETS
SETSqx
Takeover Panel
long bond
long-dated gilts
long-form report
long position, 2nd
long-range structural analysis, 2nd
long/short strategy
long-term-experience goods
long-term incentive plan (LTIP)
long-term investment
look-through earnings (true economic earnings), 2nd
losses, options to reduce
lot (piece)
low-grade debt. See junk bonds; mezzanine finance
lower-yield shares (stocks)
LPEQ. See listed private equity
LSE. See London Stock Exchange
Ltd. See limited company
LTIP. See long-term incentive plan
macroeconomics
Main Market, 2nd, 3rd, 4th
maintenance margin (futures), 2nd
“making a book,” 2nd
managed funds, 2nd
management, meeting
management buy-ins (MBIs), 2nd
management buy-outs (MBOs), 2nd
management roadshow
managementism/managerialism
manager
active versus passive
investing in own funds
report
risk, 2nd
managerial control of private equity
managerial merger motives
managing director (MD)
mandatory bid, 2nd
margin (futures)
margin (market makers)
margin account
member’s
margin calls, 2nd
margin of safety
margins
example showing
initial margin
maintenance margin
variation margin
marked down
market-cap weighted index (market-value weighted)
market capitalisation, 2nd, 3rd
market entry
market index, 2nd
calculating
collective investment performance, comparing
international
major UK market indices
market makers, 2nd, 3rd
market order, 2nd
market portfolio
market power, 2nd
market risk. See systematic risk
market-to-book ratio, 2nd
market value reduction (MVR) (market value adjustor)
market-value weighted index (market-cap weighted)
market weightings
markets
indices, major UK
See also FTSE International
liquid
in managerial control
marking to
money
primary, 2nd
regulation of
second-tier
secondary, 2nd
See also stock markets
Markets in Financial Instruments Directive (MiFID), 2nd
marking down
marking to market, 2nd
Marriage, Madison
matador, 2nd
matched-bargain system. See order-driven trading system
maturity (maturity date or Final maturity or redemption date)
maturity structure
maturity transformation
maximisation of long-term shareholder wealth
MBIs. See management buy-ins
MBOs. See management buy-outs
McCallum, Marcus
McDonald
MD. See managing director
mean reversion. See reversion to the mean
medium-dated gilts
medium-term note (MTN)
member’s margin account
Memorandum of Association
merchant bank. See investment bank
Merck
merger motives
in interest of shareholders
managerial motives
third-party motives
mergers, 2nd, 3rd
failure of
financing. See financing mergers
winners from
See also takeovers
mezzanine debt
mezzanine finance
Microsoft
mid-market price
MiFID. See Markets in Financial Instruments Directive
millionaire, becoming
mini-bonds, 2nd
minority interests
minority shareholder, 2nd
MM
mobilisation of savings
Model Code for Directors’ Dealings
Moët et Chandon
momentum investing
monetary policy
Money Management magazine
money markets, 2nd
money rate of return
money up-front
monitoring
monopoly
Moody’s
Mooney, Attracta
moral hazard
mortgage-backed securities
mortgage bonds
mortgage debentures, 2nd
MSCI ACWI
MSCI EM (MSCI Emerging Markets Index)
MSCI World
MTFs. See multilateral trading facilities
MTN. See medium-term note
multi-bagger
multilateral trading facilities (MTFs), 3rd
Munger, Charlie
Murphy, Hannah, 2nd
Mursell, Haydn
mutual fund
mutually owned organisations
MVR. See market value reduction
naked (uncovered) call option writing, 2nd
Nascimento, Michael
NASDAQ, 2nd, 3rd
NASDAQ, 2nd, 3rd
NASDAQ Baltic
NASDAQ Composite
NASDAQ Nordic, 2nd
NASDAQ OMX
National Fraud Authority
National Savings
NAV. See net asset value
near-cash (near-money, quasi-money)
necessary level of expenditure in the future
NED. See non-executive (outside) director
negative (restrictive) covenants, 2nd
negotiable
negotiable bonds
Nescafé
net asset value (NAV), 2nd, 3rd, 4th
net assets, 2nd, 3rd
return on
net book value, 2nd
net cash flow from operating activities
net current assets, 2nd
net debt, reconciling the movement of cash with the movement in
net interest yield
net operating cash flow
net present value (NPV)
net profit (net income), 2nd
net realisable value
net tangible asset value (NTAV)
net worth. See net asset value
new entrants, 2nd
new issues, 2nd
AIM flotation versus one on Official List
corporate broker, role of
finding out about
flotation, methods of
process
prospectus
sponsor
underwriting
New York Stock Exchange (NYSE), 2nd
news, 2nd
newspaper websites
NEX Exchange, 2nd, 3rd, 4th
niche company
nifty fifty
Nike, 2nd
Nikkei 225 index, 2nd, 3rd
nil paid rights
NMS. See normal market size
no-experience goods
noise trading
nomad. See nominated adviser
nominal return (or nominal interest rate), 2nd
nominal value. See par value
nominated adviser (nomad), 2nd, 3rd
nominated brokers, 2nd
nominee accounts, 2nd
nominee company, 2nd
non-controlling (minority) shareholders, 2nd
non-controlling interests
non-current assets
non-executive (outside) director (NED)
Non-UCITS Retail Scheme (NURS), 2nd
non-voting shares
normal market size (NMS)
normal rate of return, 2nd
normalised earnings
normalised earnings per share. See headline earnings per share
note (promissory note)
notes to the accounts
notional trading requirement, 2nd, 3rd
NPV. See net present value
NTAV. See net tangible asset value
NURS. See Non-UCITS Retail Scheme
NYSE. See New York Stock Exchange
OEF. See open-ended funds
OEICs. See open-ended investment companies
off-balance-sheet finance, 2nd
off-market transfer, 2nd
“off the exchange,”
offer document, 2nd
offer for sale, 2nd
offer for subscription
offer price, 2nd, 3rd, 4th, 5th, 6th
Official List (OL), 2nd, 3rd
offshore investment
offshore roll-up funds
oligopoly
ombudsman, 2nd
OMX
OMX Nordic
On Toads and Princesses
ongoing charges, 2nd, 3rd, 4th
onshore fund
open-ended funds (OEF), 2nd, 3rd, 4th
open-ended investment companies (OEICs), 2nd, 3rd, 4th
open interest
open offers, 2nd, 3rd
open outcry, 2nd
operating activities
operating and financial review (OFR). See business review
operating gearing. See gearing
operating leases, 2nd
operating margin. See operating profit margin
operating profit (operating income)
operating profit margin (operating margin, trading margin), 2nd, 3rd
Operation Tidworth
operational efficiency of a market
opportunity cost
option premium
options
options and derivatives
call option holders/buyers
call option writers
defined
hedging
index options
LIFFE share options
option writing strategy example
put options
to reducing losses
share options
share options to reducing risk
websites
writing strategy example
Optiver
Order Book for Retail Bond (ORB), 2nd
order book system. See order-driven trading system
order book trading
order-driven system, 2nd
order-driven trading system (matched bargain or order book system), 2nd
order options
ordinary resources, 2nd
ordinary shares
organic capital growth
organic growth
orphan assets, 2nd
OTC trade. See over-the-counter trade
out-of-the-money option, 2nd
outlets, control over
over-allotment issue. See greenshoe
over-capacity
over-exploiting resources
over-subscription
over-the-counter (OTC) trade, 2nd
overdraft
overhang
overhead, 2nd
overseas broker
overseas shares
emerging stock markets
frontier markets
points for investing abroad
websites
overtrading
overweighting
owner earnings, 2nd
Pac-Man defence, 2nd
paid-up capital
Palmer, Andy
PALs. See Provisional Allotment Letters
Panel. See City Panel on Takeovers and Mergers
paper
paper bid
par value (nominal, principal, stated book or face value), 2nd, 3rd, 4th
parent company (holding company), 2nd
parity
Parker, Ryan
participating preference share, 2nd
partnerships, 2nd
passive fund. See tracker fund
passive managers
patent rights
path-dependent resources, 2nd
pathfinder prospectus, 2nd
payables (accounts payable), 2nd, 3rd
payback
paying for shares, methods of
payout ratio, 2nd, 3rd
PBIT. See profit before interest and tax
peer-to-peer lending, 2nd
PEG ratio
PEITs. See private equity investment trusts
penny shares
pension funds/scheme, 2nd, 3rd
See also personal/private pension
pension holiday
Pep. See personal equity plan
PER. See price-earnings ratio
perfect competition (perfect market)
perfect hedge
perfect market. See perfect competition
perfect negative correlation
perfect positive correlation
performance, measuring
indices
risk
websites
See also performance ratios and measures
performance attribution
performance fees, 2nd
performance ratios and measures
EBITDA
free cash flow
owner earnings
profit margins
return on capital employed
perks, 2nd
permanent capital
permanent interest-bearing shares (PIBS)
perpetual bonds
perpetual life
perpetuity
Persimmon
personal equity plan (Pep)
personal guarantee
Personal Investment Management and Financial Advice Association (PIMFA)
personal membership of CREST, 2nd
personal/private pension, 2nd, 3rd, 4th
lifestyle pensions
self-invested personal pensions
stakeholder pensions
warnings on
physical delivery/settlement, 2nd
physical exchange traded funds (physical replication), 2nd
physically unique resources
PIBS. See permanent interest-bearing shares
piece. See lot
pilot fishing, 2nd
PIMFA. See Personal Investment Management and Financial Advice Association
placing, place or placement, 2nd, 3rd, 4th
plain vanilla
planned exit funds
platform (investment platform, fund platform), 2nd
platform fee
plc. See public limited company
Plimmer, Gill
poison pills, 2nd
policy, government
political risks, 2nd, 3rd
Polson, Mark
pooled funds, 2nd
pooled investments
exchange traded funds
hedge funds
high fees, significance of
insurance company bonds
investment platforms/supermarkets
investment trusts (investment companies)
money markets
open-ended investment companies
stock-market-linked bonds
unit trusts
with-profits policies
Pooler, Michael
Porter, Michael
competitive forces
portfolio theory
portfolio turnover
portfolios, 2nd
post-bid
pound cost averaging
power
PRA. See Prudential Regulatory Authority
pre-bid
pre-emption rights, 2nd, 3rd, 4th
pre-float preparation period
pre-tax margin. See pre-tax profit margin
pre-tax profit
pre-tax profit margin (pre-tax margin), 2nd, 3rd
precipice bonds, 2nd
preference shares, 2nd, 3rd, 4th
preferred ordinary shares
preliminary results (prelims), 2nd, 3rd
premium (investment trusts)
premium (on an option)
premium listing, 2nd
premium to NAV
premiums, 2nd, 3rd, 4th
example
present value, 2nd
price discount decision
price discovery (price formation), 2nd
price-earnings ratio (PER, price-earnings multiple, PE multiple, PE ratio, P/E ratio), 2nd, 3rd, 4th
price-earnings ratio game (bootstrapping)
price formation. See price discovery
price improvement service, 2nd
price limit
price offering
price-sensitive information, 2nd
price-to-book ratio (market-to-book ratio)
price-weighted index, 2nd
prices
on financial websites
of gilts
prices of shares, websites for finding
company websites
financial websites
newspaper websites
pricing
supply and demand and
unit trusts
pricing power, 2nd
primary dealer
primary investors
primary listing
primary markets, 2nd, 3rd
prime grade. See investment grade debt
principal
principal-agent problem
private client brokers, 2nd
private clients, 2nd
private equity, 2nd, 3rd
exits
leverage
managerial control
other
points for investors
private equity investment trusts (PEITs), 2nd, 3rd
private investors (private clients), 2nd
private limited company (Ltd), 2nd
privatisation
pro-forma
pro-forma earnings
profit after tax
profit and loss account (income statement), 2nd, 3rd, 4th, 5th
administration costs and other costs
capital growth
cost of sales
depreciation
distribution costs
dividends per share
earnings per share
exceptional items
gross profit
operating profit
organic capital growth
pre-tax profit
profit after tax
profit before tax
revenue
sales
turnover
profit attributable to equity shareholders of the parent company
profit before interest and tax (PBIT)
profit before tax
‘profit for the period,’
profit margins, 2nd
profits in investee companies, missing
project finance
Prometeia
promising company
promissory note
proprietary transactions (proprietary trading), 2nd
ProShare, 2nd
ProShare Investment Clubs Manual
prospective basis
prospective PER. See price-earnings ratio
prospectus (listing particulars), 2nd, 3rd, 4th
protected bonds
Provisional Allotment Letters (PALs), 2nd
provisions, 2nd
proxy votes
Prudential Regulatory Authority (PRA)
PTP transaction. See public-to-private transaction
“public,” in general
public limited company (plc), 2nd
public-to-private (PTP) transaction, 2nd
put options, 2nd
qualitative analysis
qualitative elements
quant (quantum) analysis
quantitative analysis
quantitative data
quarterly dividend
quick asset value (net)
quick ratio (acid test), 2nd
quote-driven trading system
quoted
quoted companies, 2nd
quotes for gilts
rally
Ralph Lauren
random walk theory
ranking (debt)
rate of return, 2nd
rating. See credit rating
ratios and measures
financial health ratios and measures
financial pages
forward-looking measures
performance ratios and measures
raw materials or outlets, control over
Rea, Stuart
real assets, 2nd
real cash flows
real-estate investment trust (REIT)
real rate of return, 2nd
real-time dealing
realised gain (loss)
recapitalisation
receivable (accounts receivable), 2nd
receiver
recognised investment exchange (RIE), 2nd
reconciliation of operating profit reported in the income statement
reconciling the movement of cash with the movement in net debt
record date, 2nd
recoverability of debt
recovery stock
Redburn
redeemable preference shares, 2nd
redemption
redemption date
redemption gate
redemption yield. See yield
reducing balance method of depreciation
registered bond
registered owner
registrar
regular bonus
regulatory bodies
Takeover Panel
Regulatory Information Services (RIS)
Regulatory News Service (RNS), 2nd
REIT. See real-estate investment trust
relationship banking
Relationships, in TRRACK system
relative return
Rembrandt bonds, 2nd
remuneration
remuneration committee
repayment, of corporate bonds
repayment holiday. See grace period
report and accounts
reported earnings
reporting accountant
reports, obtaining
repurchase of shares
Reputation, in TRRACK system
rescheduling/restructuring finance
rescue rights issue
research and development (R&D) expenditure
residual value
resistance line
resolution
resources
extraordinary
investment in
leveraging
over-exploiting
restrictive covenants
restructuring costs
retail banking, 2nd
retail brokers. See private client brokers
retail investor (individual investor, small investor), 2nd
retail offering
Retail Price Index (RPI), 2nd
retail service providers (RSPs), 2nd
retained earnings, 2nd, 3rd, 4th
retention ratio, 2nd
return on assets (ROA); return on capital employed (ROCE); return on investment (ROI); return on invested capital (ROIC), 2nd
return on capital
return on equity (ROE), 2nd
return on gilts
return on net assets
return on shareholders’ funds
return on unit trusts
revaluation reserve, 2nd
revenue, 2nd
accounting trade
fraud on
revenue reserves (retained earnings, profit and loss reserves), 2nd, 3rd
reverse floating-rate notes. See floating-rate notes
reverse takeover, 2nd
reverse trade
reverse yield gap. See yield gap
reversing the trade. See closing out a futures position
reversion to the mean
reversionary bonus, 2nd
revolving credit
revolving underwriting facility (RUF)
reward-to-variability ratio. See Sharpe’s ratio
reward-to-volatility ratio. See Treynor’s ratio
RFR. See risk-free rate of return
RIE. See recognised investment exchange
rights issues, 2nd, 3rd, 4th, 5th
cum-rights
ex-rights
example
price discount decision
shareholder unwilling to take up rights
ring-fencing, 2nd
RIS. See Regulatory Information Services
risk, 2nd, 3rd
alpha
beta
correlation
diversification
in dividend valuation model
event risk
exchange rate risk
imitations
inflation risk
liquidity risk
manager risk
market risk
political risk
product failure
rewards of
Sharpe’s ratio
spreaders
Treynor’s ratio
volatility
risk arbitrage
risk averter
risk capital
risk-free rate of return (RFR)
risk lover (seeker)
risk premium
risk transformation
risk warning notice, 2nd
rivalry of existing companies, intensity of
RNS. See Regulatory News Service
roadshow
ROE. See return on equity
rolled-over overdraft
rolling cash spread betting (rolling daily bets), 2nd
rolling daily bets
rolling method
rolling settlement
Rolls-Royce, 2nd
RPI. See Retail Price Index
RSPs. See retail service providers
RUF. See revolving underwriting facility
running yield. See yield
S&P 500. See Standard & Poor’s
SAB
SABMiller plc
safe haven
sales
and leaseback
recognizing
sales charge. See initial charge
Samurai bonds, 2nd
Sandhu, Charanjit
savings plan
scaledown
scams
advanced fee scam
boiler room scam, 2nd
scarce resources
scheme of arrangement, 2nd
SCM Private
scrip dividends, 2nd, 3rd
scrip issues, 2nd
scuttlebutt
SEAQ. See Stock Exchange Automated Quotations
search goods
seasoned equity offerings (SEOs), 2nd, 3rd
SEC. See Securities and Exchange Commission
second interim dividend
second-round financing
second-tier markets, 2nd
secondary buy-out (sale), 2nd
secondary listing
secondary markets, 2nd, 3rd
secondary purchase, 2nd
secondary sale
Securities and Exchange Commission (SEC)
securities house
securities traded, variety of
securitisation, 2nd
security
SEDOL. See Stock Exchange Daily Official List
Seed Enterprise Investment Scheme (SEIS), 2nd, 3rd
seedcorn capital or money (seed capital or money), 2nd
SEIS. See Seed Enterprise Investment Scheme
self-assessment tax return
self-invested personal pension (SIPP), 2nd
basic low-cost SIPPs, 2nd
full SIPPs, 2nd
providers, 2nd
self-managed trust
self-protection
self-regulation
self-select ISA, 2nd
sell-side
selling futures
selling gilts
selling the rights nil paid, 2nd
selling to close
selling unit trusts
semi-strong efficiency
senior debt
See also subordinated debt
SEOs. See seasoned equity offerings
Sergio Rossi
Serious Fraud Office, 2nd
Servelec
SETS. See Stock Exchange Electronic Trading System
SETSqx. See Stock Exchange Electronic Trading Service – quotes and crosses
setting up investment clubs
settlement, 2nd, 3rd, 4th
settlement price
shadow banking
share buy-backs, 2nd
share certificates, 2nd
share exchange scheme
share investments, unusual
business angels
overseas shares
preference shares
private equity
venture capital
share market
share options
defined
ICE Futures Europe
LIFFE
to reduce risk
scheme
share perks. See perks
share premium account, 2nd
share repurchase, 2nd
‘Share Services’ pages
share split (stock split), 2nd
share trading data
shareholders
funds (equity), 2nd, 3rd, 4th
merger motives in interest of
rights
unwilling to take up rights
shares
acquisition for
defined
for financing mergers
future value of
owners of
returns of
stocks and
shares, buying and selling, 2nd
clear the trade
company information, finding
direct market access
financial websites, getting most out of
Internet dealing
order-driven trading system
paying for shares, methods of
prices of shares, finding
process of
SETSqx
stockbroker, choosing
stockbroker services
transferring shares without brokers
websites
shares, companies issuing
equity issues, other
new issues
rights issues
scrip issues
share buy-backs
special dividends
Sharpe’s ratio (reward-to-variability ratio), 2nd
Shebeens
shell company
short position, 2nd
short selling, 2nd
short-term selectivity
short-termism
shorting. See short selling
shorts, 2nd
sight bank account (current account, cheque account)
Sigma
signalling
signals
simple interest, 2nd
simple yield. See yield
single premium bond
SIPP. See self-invested personal pension
small claims court
small firm effect (size effect)
Smith, Adam
smoothing, 2nd
social change
social technology
Society of Lloyds (Lloyds). See Lloyd’s Insurance Market
solvency, 2nd
Sony
South Sea Bubble
sovereign debt
sovereign wealth fund (SWF), 2nd
special dividends, 2nd
special-purpose vehicle or entity (SPV, SPE), 2nd
special resolution, 2nd
specialised assets
specialist financial websites
specialist funds
specialist venture capital trusts
specific inflation
speculation, investment and
speculative grade
speculators
split-capital investment trusts, 2nd
sponsor (issuing house), 2nd, 3rd, 4th
sponsored membership of CREST. See personal membership of CREST
spot bet
spot delivery
spot market
spread, 2nd
spread betting, 2nd
defined
further points
money up-front
types of bets
uses of
websites
square mile. See City of London
St James’s Place
stagging
stakeholder
stakeholder pensions, 2nd
stamp duty, 2nd, 3rd, 4th
Standard & Poor’s 500 (S&P 500), 2nd, 3rd, 4th, 5th, 6th
standard deviation, 2nd
standard listing, 2nd
start-up capital
start-up companies
start-up funding
stated value
statement
statement of cash flows, 2nd
statement of changes in equity, 2nd
statement of financial position (balance sheet), 2nd, 3rd, 4th, 5th
status
statutory
steel production
Stephenson Brunel
sterling bonds, 2nd
Steward, Mark
Stewart, Alastair
Stock Exchange Automated Quotations (SEAQ), 2nd
Stock Exchange Daily Official List (SEDOL)
Stock Exchange Electronic Trading Service – quotes and crosses (SETSqx), 2nd
Stock Exchange Electronic Trading System (SETS), 2nd
stock exchanges, 2nd, 3rd, 4th
See also London Stock Exchange
stock futures
stock-market-linked bond. See guaranteed equity bonds
stock markets
Alternative Investment Market (AIM)
Big Bang
brokers
defined
Main Market (The Official List), 2nd
market makers
mergers
NEX Exchange
pricing, supply and demand and
recent moves
secondary market
securities traded, variety of
shares, owners of
stock exchanges, role of
websites
stock (share) options
stock split. See share split
stock symbols (codes, tickers, EPIC, TIDM), 2nd
stock transfer form, 2nd
stock (inventory) valuation
stockbroker
choosing
stockbroker services
advisory dealing service
discretionary service
execution-only (or dealing-only) service
stockholders
stocks, 2nd
See also gilts; shares
Stocks and Shares ISAs
stop-loss orders, 2nd
straight bond, 2nd
straight-line depreciation, 2nd
strategic analysis
strategic loss
strategy
strike bid
strike price, 2nd
strips (Separate Trading of Registered Interest and Principal of Securities) bonds
strong barriers to entry
strong form efficiency
structured investment products, 2nd
style
subordinated debt (junior debt), 2nd, 3rd
sub-prime mortgage
sub-underwriters
subscription rights
subsidiary
substitutes, 2nd
threat of
sucker’s rally
Sullivan, Ruth
summary financial statement
super equivalent obligations
supermarkets
supernormal returns, 2nd
supplier power
supply and demand, pricing and
surrender value
sustainable competitive advantage
swallowing the tail
swap
swaption or swap-option
sweep facility
SWF. See sovereign wealth fund
swinging single price
switching costs, 2nd, 3rd
switching unit trusts
syndicated loan
synergy, 2nd
synthetic replication, 2nd
systematic risk, 2nd
T+2. See two-day rolling settlement
tactic knowledge
take-out
take-out date
Takeover Panel, 2nd, 3rd, 4th
takeovers, 2nd, 3rd
bid
defence tactics
post-bid
pre-bid
regulatory bodies
scheme of arrangement
websites
tangible assets, 2nd
Tangible, in TRRACK system
tariff
tax
avoiding
corporation tax
on dividends
evading
individual savings accounts
interest-withholding
investment clubs
investment trusts
profit after
profit before
profit before interest and tax
tax-efficient charitable gifts
tax allowance
tax avoidance
tax-efficient actions
tax evasion
tax haven
taxable profit
taxation and investors
capital gains tax
dividends, tax on
Enterprise Investment Scheme
individual savings accounts
inheritance tax
interest-bearing instruments
personal pensions
stamp duty
tax-efficient charitable gifts
venture capital trusts
Taylor Wimpey
techMARK
techMARK mediscience
technical analysis. See chartism
technological change
tender offer
TEP market. See traded endowment policy market
TER. See ongoing charge
term assurance
term loan
term structure of interest rates
terminal bonus, 2nd
terminal value
TERP. See theoretical ex-rights price
Tesco, 2nd
theoretical ex-rights price (TERP)
third-party merger motives
threat of entry
credibility
differentiation
distribution channels, access to
experience
government legislation and policy
imitation, risks associated with
large economies of scale
raw materials or outlets, control over
switching costs
3 per cent rule
tick
tickers
TIDM code. See stock symbols
time loans
time value of money, 2nd, 3rd
tipsters
TMU. See Transactions Monitoring Unit
top-down
toplists
total assets less current liabilities
total dividend
total expense ratio (TER). See ongoing charge
total shareholder return (TSR) or total return
touch. See yellow strip
touch prices
tracker fund, 2nd
tracking difference (performance difference)
tracking error
trade credit (payables)
trade creditors, 2nd
trade debtors (receivables)
trade execution
trade sale, 2nd
traded endowment policy (TEP) market
traded options, 2nd
trades
trading, in corporate bonds
trading floor, 2nd
trading margin. See operating profit margin
trading statements (trading updates). See interim management statement
trading update. See interim management statement
traditional option
trail commission
trailing PER. See price-earnings ratio
transaction costs
transaction taxes
Transactions Monitoring Unit (TMU)
transferring shares without brokers
treasury
treasury bills, 2nd
treasury bond
Treynor’s ratio or index (reward-to-volatility ratio), 2nd
TRRACK system, 2nd, 3rd
T Tangible
R Relationships
R Reputation
A Attitude
C Capabilities
K Knowledge
trust deeds, 2nd, 3rd
trustees, 2nd
tulip bulb options
tulipmania
turnarounds
turnover (revenue/sales), 2nd
Twitter
two-day rolling settlement (T+2), 2nd
typical ongoing charge (TER)
UCITS. See Undertaking for Collective Investment in Transferable Securities
UKLA. See United Kingdom Listing Authority
ultimate borrowers
ultra-long gilts/bonds
ultra-short gilts/bonds
umbrella structure for OEICs, 2nd
uncertainty
unconditionality (unconditional offer), 2nd
uncovered (naked) call option writing, 2nd
underlying assets, 2nd
underlying earnings per share. See headline earnings per share
Undertaking for Collective Investment in Transferable Securities (UCITS), 2nd
underweighting
underwriters, 2nd, 3rd
undifferentiated product
undiversifiable risk. See systematic risk
uninformed investors
unintelligent speculation
unique risk
unit holder, levels of protection for
auditor
Financial Conduct Authority
Financial Ombudsman Service
Financial Services Compensation Scheme
trustee
unit-linked policies
unit trusts, 2nd, 3rd
active versus passive managers
buying
charges
choosing
Key Investor Information Document
minimum investment
NURS
pricing
progress of units, following
protection for unit holder
returns
selling
switching
types of
UCITS
unit valuation system, 2nd
United Kingdom
UK Corporate Governance Code, 2nd
UK financial services industry regulation
UK Shareholders’ Association
undemocratic nominee system
United Kingdom Listing Authority (UKLA), 2nd, 3rd, 4th, 5th
United States indices
unitised with-profits policy, 2nd
universal banks, 2nd
unlisted
unquoted firms
unrealised gain (loss)
unsecured
unsecured shorter-dated bonds
unsystematic (unique or diversifiable or specific) risk
valuation risk (price risk)
value-based management
value chain
value drivers
value investing
vanilla bond. See straight bond
variable costs, 2nd
variable-rate bond (loan), 2nd
variable-rate notes. See floating-rate notes
variable rate preference shares
variance, 2nd
variation margin, 2nd
VC. See venture capital
VCTs. See venture capital trusts
vegetarianism
vendor placing, 2nd
venture capital (VC), 2nd, 3rd
venture capital trusts (VCTs), 2nd, 3rd
venture funding
early-stage
expansion (development or growth)
leveraged buy-out
management buy-ins
management buy-outs
public-to-private
secondary purchase
seedcorn
start-up
vertical merger
virtual bid (indicative offer), 2nd
virtual portfolio
Vodafone
volatility, 2nd
volume
volume transformation
voting by proxy
W–8BEN form
Wal-Mart
Wall Street
Wall Street Journal
warrants, 2nd
covered
websites
Wasps rugby club
Waters, Richard
WDA. See writing down allowance
weak-form efficiency
Wealth Management Association
Webb, Merryn Somerset
websites
on bids
business angels
for buying and selling shares
company
crowdfunding
financial, getting most out of. See financial websites
for finding share prices
fund managers
investment trusts
for investors in overseas shares
measuring performance
new issues
options and derivatives
overseas shares
spread betting
stock markets
supermarkets
warrants
What Investment magazine
Whiffin, Andrew
white knight, 2nd
whole-of-life policy
wholesale bank
wholesale financial markets
Wiggins
winding up
winner’s curse
with-profits bonds, 2nd, 3rd
with-profits policy, 2nd
withholding tax, 2nd
Woodford, Neil
working capital, 2nd
World-Com
wound up company
Wrekin Construction
write-down (write-off), 2nd
writer
writer of an option
writing down allowance (WDA) (capital allowance)
yankee, 2nd
yellow strip, 2nd, 3rd
yield, 2nd, 3rd
yield curve
yield gap
yield stock. See high-yield shares
yield to maturity (YTM). See yield
Yves Saint Laurent
zero coupon bond (or zero coupon preference share), 2nd
zero dividend preference shares. See split-capital investment trusts
zero-interest credit cards
zeros. See split-capital investment trusts
Zopa
