P228 CEEFAX 228 Wed 3 Feb 21:06/12   1/8     STOCK MARKET ABC "A" ordinary shares Lacuhng voting rights and usually a little chfaperN Account The Stock Exchange's year is split into 24 accounts, most of them of two weeksN Money due on dealings is not pcid until the end of an account, which means that shares may be bought and sold ag—hn 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 sprfad The gap between buying and selling pricesN  More
P228 CEEFAX 228 Wed 3 Feb 21:04/06   2/8      STOCB MARKET ABC Blue chips Top firms and their shares. Bulls Investors who buy in the belief that the price will riseN Hence, also, a "bull market" or "bullish" mood. Call options See TRADED OPTIONS. Capital Gains Tax (£GT) Levied on any capital gains in excess of £6,600 in a single tax yearN Capitalisation Issue A free issue of shares to shareholders in proportion to their holdings whenever a company wants to "capitalise" excess reservesN  More
P228 CEEFAX 228 Wed 3 Feb 21:00/10   3/8      S NBB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 ( B8. 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 S NBOS Government stock See S NBNS Index-linked See S$NBVS.  More
P228 CEEFAX 228 Wed 3 Feb 21:00/01   4/8      STOCK MARKET ABC Market-makers Dealers commhtted to making a price M quoting buy and sell prices M in a minimum number of shares. New time dealings Buying or selling in thf last two days of one account for settlement (payment) in the next. Options The right to buy or sell a share within a specified period - three months is the norm M at a set price. See TRADED OPTIONSN Ordinary shares See SHARESN PLC Firm able to sell shares publicly.  More
P228 CEEFAX 228 Wed 3 Feb 21:00/04   5/8      S NBB MARKET ABC Par For shares, the face valueN For government stock, £100N For partly paid Perks Shares in some companies confer certain privileges on shareholdersN Preference shares See SHA DS  Put options See TRADED OP HFNS. Rights issue A means of raiqhng fresh capital by selling shares to existing shareholders on a proportional basisN  Mord
P228 CEEFAX 228 Wed 3 Feb 21:00/00   6/8      S NBB MARKET ABC Scrip issue See CA@ITALISATION ISSUE. Shares Ordinary shares are simply part of the capital of a compaf8, entitling the holder to a say in its running (via votes at the annual meeting) and to a s—are of any profits (dividends). "A" ordinary shares carry no voting rightsN 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 profitN  Mord
P228 CEEFAX 228 Wed 3 Feb 21:02/35   7/8     STOCK MARKET ABC Stamp Duty Equals \pc of purchase price of sharesN Does not apply to gilts. Stocks Government stock (gilts or gilt- edged) gives a fixed return M known as its coupon - and repays its £100 par value at maturityN See PAR. The market price fluctuates, usually in opposition to the prevailing level of interest ratesN Undated stock simply pays interest and will never bf redeemedN Index-linked stock pays a rate of interest tied to the retail price index.  More
P228 CEEFAX 228 Wed 3 Feb 21:02/13   8/8     STOCK MARKET ABC Stocks (cont) Companies issue debenture stock, giving holddrs a prior claim on thdir assets, as well as unsecured loan stock, which does not. Convertible loan stock may be swapped latdr for shardsN Tap stock Governldnt 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