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FINANCIAL
GLOSSARY: C
C Shares
A class of share
issued by investment trusts that carries an ongoing fee.
Cac 40 index
The main index of
the French stock market made up of the 40 largest companies by market
capitalisation.
Call option
An option that gives
the holder the right to buy shares at a specified price on a specified
date in the future. It is an option to buy that doesn't have to be exercised.
Capital
The money that is
invested in company.
Capital
expenditure
Expenditure on the
company's long term asset.
Capital
growth
The increase in
value of assets and investments.
Capital
gains tax (CGT)
Tax paid on the
profits or gains made from the sale of fixed assets.
CAT mark
A benchmark against
which products can be compared against. CAT is an acronym for 'Charges,
Access, Terms' and the mark is a government seal of approval on an individual
savings account (ISA) - the replacement for the personal equity plan.
Requirements under each of the headings ensure that the product is flexible
and of good value.
Charting
Chartists believe
that investment opportunities can be spotted by analysing changes in
share price trends.
Churning
Term used to describe
the excessive trading of a client's account by a broker in order to
increase their commissions.
Commission
The charge made
by a stockbroker or the fee a financial adviser makes from a company
whose products have been sold, generally based on the value of the sale.
Commodities
Term used to describe
goods that have been mined, produced or harvested, like gold, coffee
beans, etc. These are bought and sold in dedicated commodities markets.
Company
share option scheme
A scheme offered
by companies to employees to encourage better performance. Participants
are given the right to buy shares in the company in the future, usually
at a discount.
Compound
interest
Interest is earned
on the principal amount and the accumulated interest of prior periods.
Contract
note
The confirmation
of your share purchase transaction.
Convertible
bonds or loan stock
Bonds/loan stock
that give the holder the right to convert to shares at a future date.
The terms of the conversion are set at the time of issue. The aim is
to give investors a regular income whilst also giving them the chance
to share in the capital growth of the company at a later date.
Corporate
bond
Bonds issued by
a public company.
Corporation
tax
Tax chargeable on
the profits of a UK company.
Correction
A reverse movement
in the value of shares or securities, usually a sharp downturn in the
value.
Coupon
The interest rate
on a fixed-interest security.
Crest
The electronic system
for settling share transactions, introduced in July 1997 by the London
Stock Exchange, under which paper share certificates are no longer needed.
Critical
illness cover
An insurance policy
which will pay out a lump sum if you are diagnosed with or suffer from
any of the listed life-threatening conditions such as, cancer, heart
attack, or stroke.
Cum dividend
The latin word for
'with'. If a dividend is just about to be paid on a share then an investor
buying a cum dividend share will be entitled to receive the dividend.
If the share is ex-dividend, it means the dividend has already been
paid out.
