Glossary Glossary

 Glossary

 

 

A

Asset
Something that you own that has real value and can be used or exchanged.
Examples include, shares and bonds.

Asset Allocation Models
Deciding which assets to buy. A strategy to balance your investment risk by detailed and continuous research of markets and trading conditions.

 

 

 

Bond
A commitment to pay a pre-agreed fixed amount at a certain time.
For example US treasury Bonds.

Bonds
High quality direct fixed-interest investments where the risk profile is low.

 

 

 
 

 

 

 

Capital
A real asset that you own. For example: cash, buildings or stocks and shares.

Capital Gains
The gain you make after selling an asset where the selling price
is more than the buying price.

Contract Note
A legally binding confirmation of each portfolio transaction showing the:
 date of each transaction
 security description
 amount bought or sold
A contract note is sent to you after each transaction.

 

 
 

 

 

 

Dividend
Income you get from a share holding representing your part of the profits.

 

 
 

 

 

 

Equities
The underlying securities that are either direct Stock Market blue chip companies or unit trusts consisting of individual Stock Market quoted companies.

 

Euro
The common European currency adopted by 11 nations from January 1 2002. Quickly established as second only to the US dollar as a currency of choice for international investors.

 

 

 
 

 

 

 

Fixed Interest
Usually a term used for the income received from certain types of bonds.
The income or yield does not change over the lifetime of the bond.

 

FOOTSIE 
FT-SE 100 Index. It tracks market changes through a weighted index of 100 blue chip shares traded on the London Stock Exchange.

 

Financial Planner
A professionally qualified individual who has the expertise to advise you in general terms on all aspects of your finances. They work in the same way as a general practitioner does in the medical field and will refer you on if you need specialist advice. For most people however a visit to a financial planner is all you need.

 

 
 

 

 

 

Gross National Product
Usually shortened to GNP The market value of the goods and services produced by a country in a year. The GNP of the major economies are normally reported quarterly and these figures are carefully examined by the market.
Formerly called Gross Domestic Product.

 

 
 

 

 

 

Hedge Fund
A strategy to reduce or offset investment risk using derivatives.

 

 
 

 

 

 

Inflation Rise
In prices of goods and services usually because too much money is chasing too few goods. House price inflation in the UK is a good current example.

Institutional Prices
Very advantageous dealing prices in unit trusts which are not available to the general public on a direct basis. Institutional prices are usually the net asset value of a unit trust plus a small percentage difference of around 0.5%. Private clients usually pay retail prices that are often the net asset value plus as much as 5%.

 

 
 

 

 

 

Jurisdiction
The country where your investment is held. For example, we use the Isle of Man as the jurisdiction for some of our products because of its low taxes and stability.

 

 
 

 

 

 

Key Man or Woman Insurance
An insurance policy businesses take out to cover the inevitable financial losses involved in the unfortunate early death or serious illness of a key worker.

 

 
 

 

 

 

Long Term
 
In our view a period of five or more years. We specialise in products and investment strategies taking a long-term view.

Launder
To make cash acquired illegally look as if it was made legally. To protect our clients and our reputation we never accept cash in any circumstances.

Liquidity
The ability to buy or sell an asset quickly and in large volume without substantially affecting its price. Shares in blue-chip companies are liquid because they are always in demand and actively traded.

 

 
 

 

 

 

Market Maker
A person who carries out the order to buy or sell your stocks and shares and generally matches buyers with sellers. When there are more buyers than sellers they will adjust the price upwards to attract sellers. Conversely If there are more sellers than buyers they will mark prices lower.

Market Price (also known as Market Value)
The value of an asset based on the price it would fetch if sold now.

 

 
 

 

 

 

NASDAQ
The first electronic stock market. It provides brokers and dealers with instant up-to-date price quotations for many New York Stock Exchange listed securities and companies like Microsoft and Intel.

 

 
 

 

 

 

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Portfolio Manager
A fully qualified person who has the responsibility for the day-to-day management of your portfolio who regularly reports to a director of Insinger de Beaufort.

Premium
The amount of money you pay into in an insurance policy. It can be a regular and continuing monthly payment or a one-off lump sum.

 

 
 

 

 

 

Quotation
In stock market parlance, the price a market maker will offer you to buy or sell an asset.

 

 
 

 

 

 

Risk Profile
Risk profiles can be low, medium or high. A careful assessment of your individual financial status and needs is required before any of these models are applied to your portfolio. Portfolios can be managed for pure capital growth or a balance between growth or income.

 

 
 

 

 

 

Short Term
A period of up to five years.

 

 
 

 

 

 

Tax avoidance
A legal planned strategy to pay the least amount of tax as possible. We exist to help you to do this. Not to be confused with Tax Evasion, which isthe illegal practice of intentionally evading taxes. Common and therefore easily traceable tactics include underreporting income or hiding assets for the tax authorities. We are experts in exploiting clever lawful tax avoidance strategies and can help you avoid any accidental or unintentional tax evasion and the unwelcome consequences and severe financial and criminal penalties.

 

 
 

 

 

 

Unit Trusts
A fund made up of a group of individual securities specifically linked to either a geographical area or business sector. The price of the fund is the value of all the securities added together divided by the number of units issued. The fund is open and has an unlimited number of unit holders.

 

 
 

 

 

 

Valuation
Placing a value or worth on an asset. On our website can get an instant valuation of your portfolio or any asset your have registered with us. We can also advise you whether an asset is worth buying or selling at the current price.

 

 
 

 

 

 

Wealth
The market value of everything you own less the total amount of what you owe.

 

 
 

 

 

 

X or XD
Symbol used in the financial press and pages of newspapers to show a stock is trading after a recent dividend has been paid.

 

 
 

 

 

 

Yield
The return on an investor
?s capital investment. For example: a piece of land may yield a certain return based on its rental income less the expenses of owning it.

 

 
 

 

 

 

Z-Bond
Well we had to put something in here!
Complicated financial devices featuring differing payment methods.

 

 

 

 

 

 

 


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