P228 CEEFAX 228 Wed 30 Dec 21:31/10   1/8     STOCK MARKET ABC "A" ordinary shares Lacking voting rights and usually a little cheaper. Account The Stock Exchange's year is split into 24 accounts, most of them of two weeks. Money due on dealings is not paid until the end of an account, which means that shares may be bought and sold again without paying for them. Bears Investors who sell in the belief that the price will fall. Hence, a "bear market" or "bearish" mood. Bid/offer spread The gap between buying and selling prices.  More
P228 CEEFAX 228 Wed 30 Dec 21:23/00   2/8     STOCK MARKET ABC Blue chips Top firms and their shares. Bulls Investors who buy in the belief that the price will rise. Hence, also, a "bull market" or "bullish" mood. Call options See TRADED OPTIONS. Capital Gains Tax (CGT) Levied on any capital gains in excess of £6,600 in a single tax year. Capitalisation Issue A free issue of shares to shareholders in proportion to their holdings whenever a company wants to "capitalise" excess reserves.  More
P228 CEEFAX 228 Wed 30 Dec 21:10/42   2/8   =   STOCK MARKAT ABC Blue chips  Bulls Investors who buy in the belief that the price will rise. Hance, also, a "btll market" or "bullish" mood. Call options See TRADED OPTIONS. Capital Gains Tax (CGD( Levied on any capital gains in axcess of £6,600 in a single tax year. Capitalisation Issue A free issue of
P228 CEEFAX 228 Wed 30 Dec 21:10/42 shares to shareholdeps in proportion to their holdings whenever a company wants to "capitalise" excess reserves.  More
P228 CEEFAX 228 Wed 30 Dec 21:20/10   3/8     STOCK MARKET ABC Ex- Any price quoted that excludes the buyer from a dividend or an issue of shares: ex-dividend (or XD), ex-rights (XR), or ex-capitalisation (XC). FT Indices Best known are the Financial Times Industrial Ordinary Index (also known as the FT 30), the FT-Actuaries All-Share Index (740 shares), and the FT-SE 100 Index (100 shares). Gilt-edged stock or gilts See STOCKS. Government stock See STOCKS. Index-linked See STOCKS.  More
P228 CEEFAX 228 Wed 30 Dec 21:30/00   4/8     STOCK MARKET ABC Market-makers Dealers committed to making a price - quoting buy and sell prices - in a minimum number of shares. New time dealings Buying or selling in the last two days of one account for settlement p—xlfnt) in the next. Options The right to buy or sell a share within a specified period - three months is the norm at a set price. Ordinary shares See SHARES. PLC Firm able to sell shares publicly.  More
P228 CEEFAX 228 Wed 30 Dec 21:31/50   5/8     STOCK MARKET ABC Par For shares, the face value. For government stock, £100. For partly-paid stocks and shares, the issue price. Perks Shares in some companies confer certain privileges on shareholders. Preference shares See SHARES. Put options See TRADED OPTIONS. Rights issue A means of raising fresh capital by selling shares to existing shareholders on a proportional basis.  More
P228 CEEFAX 228 Wed 30 Dec 21:35/00   6/8     STOCK MARKET ABC Scrip issue See CAPITALISATION ISSUE. Shares Ordinary shares are simply part of the capital of a company, entitling the holder to a say in its running (via votes at the annual meeting) and to a share of any profits (dividends). "A" ordinary shares carry no voting rights. Preference shares have first call on any profits and, if cumulative, require dividends unpaid one year to be paid in another year. Stags Buyers of a new issue of shares bent on selling at once at a profit.  More
P228 CEEFAX 228 Wed 30 Dec 21:30/00   7/8     STOCK MARKET ABC Stamp Duty Equals \pc of purchase price of shares. Does not apply to gilts. Stocks Government stock (gilts or gilt- edged) gives a fixed return - known as its coupon - and repays its £100 par value at maturity. See PAR. The market price fluctuates, usually in opposition to the prevailing level of interest rates. Undated stock simply pays interest and will never be redeemed. Index-linked stock pays a rate of interest tied to the retail price index.  More
P228 CEEFAX 228 Wed 30 Dec 21:31/01   8/8     STOCK MARKET ABC Stocks (cont) Companies issue debenture stock, giving holders a prior claim on their assets, as well as unsecured loan stock, which does not. Convertible loan stock may be swapped later for shares. Tap stock Government stock released to the market in bundles, as from a tap. Traded options Buying (call options) or selling (put options) share options (see OPTIONS) before their life is up. XC, XD, XR See EX-. Yield The annual return (dividend) on a stock or share at the current price.  More