The right to redeem outstanding bonds before their scheduled maturity.
These are orders that have been cancelled before being dealt, either by you, by our dealers, or if a limit has expired.
Financial assets or the financial value of assets.
The growth of the earnings on an investment's principal.
The profit made when any chargeable asset, including stocks, is sold. If a loss is made it is called a Capital Loss.
Capital Gains Tax (CGT)
Tax payable on any gains over the CGT allowance from the sale or disposal of securities stocks or other assets subject to this tax. Tax is payable at 10% of 20% (2017/18 rates) depending on the taxpayer’s level of income.
The increase in an investment's capital value excluding all income.
A means by which a company increases the number of its shares in circulation without raising more capital from existing shareholders. Additional shares are issued to existing shareholders in proportion to their holdings without payment (e.g. two new shares for every one held = a 'two for one' capitalisation issue).
Cash 'Available to Invest'
This is your current cleared cash balance plus any sales, less any purchases, that will settle in the next 3 business days.
An extra dividend paid out of exceptional profits which is in addition to a normal dividend.
A cash payment per share held paid to shareholders net of tax - currently 10% for UK equities. Higher rate taxpayers are still liable for the balance of tax.
Cash Management Service
You can hold cash within your Barclays Stockbrokers account – through your Cash Management Service (CMS). Cash held in your CMS will earn gross interest paid monthly. All sales proceeds and purchase costs will be paid to and taken from your CMS. If there aren’t enough funds within your CMS, we’ll take the balance owing from your chosen bank account.
An all cash offer, usually in a company takeover.
Payment for deals the day after dealing, (immediate payment at T+1).
Cash (or money market) fund
These are funds which invest most of their assets in money market instruments (i.e. cash and near cash, such as bank deposits, certificates of deposit, very short term fixed interest securities or floating rate notes).
Usually used with reference to ISAs, these are standards introduced by the Government that specify minimum requirements for Charges, Access and Terms. However, CAT Standards are voluntary and do not guarantee the performance of the fund or investment, and do not apply to the types of ISAs offered by Barclays Stockbrokers.
A legal document holding information on the holder and the number and type of shares held by the named person on the document.
Indicates the % or pence rise or fall of a security during a given time period.
Artificial barriers to the flow of information set up in large firms to prevent the movement of sensitive information across departments.
Clean Share Class
This is when the AMC only contains the fee that is paid to the Fund Manager. Because no trail commission is included in the clean share class, the AMC is usually lower. Generally, a separate administration or platform fee is paid by the investor to the platform.
When you pay cheques into your account, they have to be 'cleared' through the banking system. This means that you cannot use the amount of the cheque to withdraw any money for 10 business days from the day your account is credited. However, we will allow you to invest these funds before your cheque is cleared.
The price quoted at close of business or close of trading session.
An investment structure that pools together investments from different investors and combines them to fund investments. Each individual investor then owns an interest in a small amount of each asset.
The charge made by a stockbroker for buying and selling securities on a client's behalf. Varies from broker to broker.
A raw material traded on a commodities market for example gold/silver. Commodities are used in the production of goods.
Securities that represent an ownership interest in a corporation, usually US.
A statement of the financial condition of the company and its activities over the past financial year. See 'annual report & accounts'.
Individuals entrusted with ensuring that a financial institution is compliant with the Financial Services & Markets Act 2000.
Person appointed within an authorised firm to be responsible for ensuring compliance with the rules.
The ability of an asset to generate earnings, which are then reinvested to generate their own earnings Interest earned in one period then earns additional interest during each subsequent period.
Once 90% of acceptances have been received, the bidding company has the right to purchase the remaining 10% of shares in issue at the offer price.
Conduct of Business Rules
Rules established by 2000 Financial Services & Markets Act dictating how firms conduct their business, particularly in terms of the relationship between firm and client.
The value of the number of shares multiplied by the price, before any other charges have been levied.
Consolidated Tax Certificate
This document is intended to aid you in your personal tax returns to HMRC. This is sent to all our clients and details all the dividends you have received in your UK account in the previous financial tax year. Not applicable for tax-efficient accounts such as ISAs.
Consistency of performance analysis
Usually in relation to funds, an indication of previous years' performance taking each year in isolation enabling you to compare one year to the next.
An agreement incorporating conditions between you and the service provider.
Confirmation from the stockbroker of the bargain, including the full title of the stock, price, commission, stamp duty, and the time of the bargain. These must be kept safely for tax purposes.
Payments made into a pension or ISA.
Also known as ‘share class conversion’ this is the process whereby investments in ‘bundled’ share classes are moved by Barclays Stockbrokers into ‘clean’ share classes.
Fixed interest investments that can be exchanged for a predetermined number of ordinary shares in the underlying company at the individual's discretion. Preference share dividends are stated net of basic rate tax compared with loan stocks which are stated gross. Conversion terms normally run for a fixed period giving the right to convert into the company's ordinary shares within a predetermined time at a predetermined rate.
An event initiated by a public company that affects the securities issued by the company. Some corporate actions may have a direct financial impact on the shareholders or bondholders, e.g. payment of a dividend or interest. Other corporate actions can have an indirect impact, e.g. stock splits, mergers, acquisitions, rights issues and spin offs.
Debt obligations issued by corporations as an alternative to offering equity ownership by issuing stock. Most corporate bonds pay half-yearly interest and promise to return their principal when they mature. Maturities range from 1 to 30 years.
The risk to each party in a financial contract that the other party, i.e. the counterparty, will not meet its contractual obligations.
The rate of interest attached to a bond or loan stock that an investor will receive until redemption.
An electronic means of settling share transactions and registering investors on companies' lists of shareholders. The effect of CREST is that ownership of company stock is treated much like money in a bank account, with information held and transactions booked electronically.
Meaning "with" this is the opposite of Ex, and is used to indicate that the buyer of a security is entitled to participate in whatever forthcoming event is specified. Cum-cap, cum-div, cum-rights etc.
Cum-rights / Ex-rights
Around the time of a rights issue, the company's shares are described as 'cum-rights' or 'ex-rights'. Cum-rights means that anyone who buys shares in the company will be entitled to subscribe for the new shares; but on and after the date of the new issue, shares become ex-rights, and the right to subscribe to the new shares stays with the seller.
Cumulative performance analysis
Usually in relation to funds, total performance return to date calculated by adding each year's performance to the previous year.
Also known as Foreign Exchange (FX or Forex),you have access to some of the major world currency crosses. Currencies are always traded as one currency against another, for example GBP/USD means you are trading sterling against the US dollar.
Current cash balance
Calculated using the value of cleared funds held and/or pending clearance. Deals pending settlement on your account will be reflected in the 'Amount Available to Invest' figure until they reach settlement when they will be debited/credited from your 'current cash balance.'
Money owed to the company and due to be paid within a year, such as accounts payable. Current liabilities are found on the company's balance sheet.
The annual interest on a bond divided by the current market price.
Customer reference number
A unique number for us to identify you as a client.