Glossary

A

Abandon

The choice made by a holder of a covered warrant to allow the warrant to expire without exercise.

Absolute Percentage Growth

Expresses the growth of a fund’s value as a percentage over the specified period. A negative figure would indicate a decline.

Account View

A page which details your cash balance and portfolio status.

Accumulation Unit

Units in a unit trust which do not pay income to the investor but which instead redistribute dividend income from the underlying investments back into the capital value of the units.

Actively Managed Funds

Unlike index funds (see ‘index funds’) these are funds where the Manager uses his professional judgment to decide which funds to buy and sell, whilst seeking to out-perform the relevant benchmark.

Administration Charge

The management charge made by your broker for looking after your nominee portfolio or account.

Adviser

A person who is qualified to discuss your financial affairs in detail, listen to your needs and make appropriate recommendations

ADR

American Depository Receipts, which are effectively bearer documents (see below) and allow American investors to own shares in foreign corporations. They are tradeable receipts which show that the underlying shares are held on deposits by a bank in the corporation's home country. The bank collects dividends, pays local taxes and converts them to dollars for distribution to shareholders.

AGM

Annual General Meeting. The meeting that a company normally holds with its shareholders after announcing its annual results to approve the accounts, re-appoint directors, auditors, etc.

AIM

The Alternative Investment Market. The London Stock Exchange's market for growing and smaller companies, created in 1995. It enables companies to attain a listing which is affordable and which does not require them to meet the stringent criteria for full quotation.

All or nothing

When placing a trade above normal market size via the personal telephone service you may be asked whether you want to trade 'all or nothing' or 'as many as possible'. All or nothing means that Barclays Stockbrokers will endeavour to trade your entire instruction and in the case that this is not possible your order will not be executed.

Allotment

The number of shares received on application for a new issue or privatisation. This may be less than the number applied for, but will never be more.

Allotment Letters

Documents representing the right to buy new shares at a stated price in a rights issue, known as the 'call' (see below). It is sometimes possible to sell such shares in a nil-paid form, delivering the allotment letters to the buyer who then pays the call. You can also sell the shares fully-paid if you have paid the call

American Style

An American style covered warrant allows the holder to exercise the covered warrant at any time on or before the expiry date.

Amount Available to Invest

This is the investment limit for your account, calculated using the Stock Value based on previous night closing prices, Current Cash Balance and any credit or debit which is currently within the settlement period. Any shortfall for purchases will be debited from your nominated bank account on the settlement date.

Note that ISA and SIPP accounts can only buy up to the value of the 'Cash Available to Invest'.

Analyst

An expert in evaluating financial investments such as equities, bonds and Government stocks; undertaking investment research; and making recommendations to institutional and retail investors to buy, sell or hold. Most analysts specialise in a single industry or business sector.

Announcements

News or information relevant to the security

Annual Report & Accounts

A statement of the financial condition of the company and its activities over the past financial year, including Profit and Loss account, Balance Sheet, Notes and a Statement of Cash Flow. All PLCs are obliged to make these available to shareholders and they can be viewed on the company's website, or obtained by writing to the company's head office, or by calling Barclays Stockbrokers.

Annual Management Charge

A charge levied by the Fund Manager to cover the cost of investment management and administration, usually for unit trusts and OEICs.

Annuity

An income guaranteed for life paid in return for handing over a lump sum. An annuity is bought at retirement by holders of most personal pension plans and members of money-purchase company schemes.

As Many as Possible

When placing a trade above normal market size via the personal telephone service you may be asked whether you want to trade 'all or nothing' or 'as many as possible'. As many as possible means that Barclays Stockbrokers will endeavour to trade as many as we can up to the amount you have specified.

Ask

The ask or asking price is the price for which the holder of the shares is willing to sell. The bid price is the opposite.

At-The-Money

A covered warrant is At-the-Money when the strike price is the same, or very close to, the price of the underlying asset. It applies to both Calls and Put warrants.

At Best

An order placed with a stockbroker to buy or sell shares at the best price in the market at the time of dealing for the number of shares being traded.

At Limit

Refer to Limit Order.

Authorised Unit Trust

A unit trust scheme authorised by the Financial Services Authority to operate in the UK.

Authority to Deal

Allowing someone other than yourself to invest on your behalf. This will require your written notification. You will need to complete additional documentation to do this.

Automated Links

This enables Barclays to trade via the electronic dealing links that exist between Barclays Stockbrokers and the Retail Service Providers (RSPs)