Glossary
of Terms
A plain English approach to
the language of investment
We try to write all our documents in plain
English and set out our terms and charges so
they are simple for you to understand and work
out. To further help you we have included a
glossary of common financial terms explained in
plain English.
Please let us know by email
or contact your local
Temple Bar International adviser
if you require any further explainations.
A
: B : C :
D : E : F
: G : H :
I : J : K
: L : M :
N : O : P
: Q : R :
S : T : U
: V : W :
X : Y : Z
A
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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.
B
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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.
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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.
D
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Dividend
Income you get from a share holding representing
your part of the profits.
E
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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.
F
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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
The popular media name for The Financial
Times’ 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.
G
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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.
H
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Hedge Fund
A strategy to reduce or offset investment risk
using derivatives.
I
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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%.
J
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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.
K
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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.
L
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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.
M
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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.
N
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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.
O
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This
category is currently empty.
P
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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.
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Quotation
In stock market parlance, the price a market
maker will offer you to buy or sell an asset.
R
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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.
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Short Term
A period of up to five years.
T
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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 is the 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.
U
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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.
V
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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.
W
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Wealth
The market value of everything you own less
the total amount
of what you owe.
X
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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.
Y
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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
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Z-Bond
Well we had to put something in here!
Complicated financial devices featuring
differing payment methods.
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