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T
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Taper relief
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UK
capital gains tax system introduced in April 1998 whereby
chargeable gains are reduced depending on the number of complete
years after April 1998 for which the asset is held.
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Tax
credit |
The amount of tax already deducted at source
on payment of a dividend.
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| Techmark |
The London Stock Exchange sub-market for those
public limited companies (plcs) committed to technological innovation.
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| Technical
Analysis |
The analysis of charts depicting past price and
volume movements to determine the future course of a particular
market or the price of an individual security. Technical analysis
is nullified by the weak form of the Efficient Markets Hypothesis
(EMH). |
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Tender
offer |
A means of issuing new stock by inviting investors
to make an offer of a price at which they are willing to purchase.
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TESSA
(Tessa) |
Tax Exempt Special Savings Account
- a UK tax efficient deposit account introduced
by the UK government to stimulate savings, now replaced by the
ISA. |
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| Tick |
The minimum price movement of a derivatives contract
as specified by the exchange on which the product is traded.
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| Tick Value |
The monetary value of one tick.
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Top-down
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A method of assessing an investment starting
from macro-economic and political influences and following this
down through geographical location, sector, and company data.
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Tracker
fund |
A collective investment which invests in the
constituent elements of, and is designed to perform in line
with, a stock exchange index. |
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Traded Endowment Policy (TEP) |
A Traded Endowment Policy (TEP)
is a mid-term with-profit endowment no longer required by the
original policyholder who has sold it on the open market at a
price greater than the surrender value. |
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| Tracking
Error |
The risk that arises from holding securities
in an actively managed portfolio in different proportions to
their weighting in a benchmark index. Also known as Active
Risk. |
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Transaction
day |
The day upon which a transaction is made (purchase
or sale of a security). It has importance in determining settlement
day and is the date used for Capital Gains Tax purposes.
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| Treasury Bills |
Short tern government -backed securities issued
at a discount to par via a weekly Bank of England auction. Treasury
bills do not pay coupons but are redeemed at par.
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Trustees |
The legal owners of trust property who owe a
duty of skill and care to the trust's beneficiaries. |
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| TWR |
The Weighted Rate of Return -
The unitised performance of a portfolio over an investment period
that eliminates the distorting effect of cash flows. The TWR
is calculated by compounding the rates of return from each investment
sub period, a sub-period being created whenever there is a movement
of capital into or out of the portfolio.
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UCITS
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Undertakings
for Collective Investments in Transferable Securities directive
- an EU directive originally introduced in 1985
but since revised to enable collective investment schemes
(CITs) authorised in one EU member state to be freely marketed
throughout the EU , subject to the marketing rules of the
host state and certain fund structure rules being complied
with.
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| UKLA |
UK listing Authority
- the body for setting and administering the listing requirements
and continuing obligations for public limited companies (plcs)
seeking and obtaining a full list on the London Stock Exchange.
The Financial Services Authority as appointed as the UKLA in
May 2000. |
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Underwriting
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An agreement whereby institutions guarantee to
subscribe for a new issue of existing shares should the market
demand prove less than the available supply of the new issue.
A fee is paid proportionate to the perceived risk of being called,
the precise fee being determined by tender offer. |
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| Unemployment |
The percentage of the labor force registered
as available to work at the current wage rate.
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Unit
Trust |
A public unitised trust whose asset is a portfolio
of securities with a stated aim, and which is managed by professional
fund managers and quoted by its managers not by reference to
a market but in its simplistic form, by the division of the
portfolio by the number of units in issue. |
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Venture
capital |
Risk capital which is offered by individuals
or institutions for investment in new or developing businesses
in exchange for an equity stake rather than as a loan.
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| Virt -X |
A pan-European stock exchange for the trading
of blue chip shares. Virt-X was formed by the amalgamation of
the Trade point exchange and the Swiss stock exchange. |
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Volatility
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The speed and magnitude of price changes measured
over a certain period of time.
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| WACC |
Weighted Average Cost of Capital
- the average post-tax cost of servicing company's
long term sources of finance. The WACC acts as the discount
rate for establishing the Net Present Value (NPV) of investment
projects of equivalent risk to those currently undertaken by
the company.
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Warrants
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Warrants confer the option (but not the obligation)
to purchase securities at a predetermined price (or formula)
at specified dates in the future and provide substantial gearing
potential to the investor. Once the final exercise date has
passed the warrants then become valueless.
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Yield
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The return – both income and capital gains
– of an investment calculated as a percentage. |
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| ZCBs |
Zero Coupon Bonds -
bonds issued at a discount top their Nominal Value that do not
pay a Coupon but which are redeemed at par on a pre specified
future date.
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