Glossary

C

call bonds 

The right to redeem outstanding bonds before their scheduled maturity.   

call covered warrant

A covered warrant that gives the holder the right, but not the obligation, to buy the underlying asset at a future date and specified price.

call option

Gives the buyer the right to buy or sell shares in the underlying security at a fixed price before a specified expiration date.

call payment

The payment which falls due in respect of any partly paid shares (e.g. right issues). The company 'calls in' payment from the holders of the shares.

cancelled status

These are orders that have been cancelled before being dealt, either by you, by our dealers, or if a limit has expired.

capital

Financial assets or the financial value of assets.

capital appreciation

The growth of the earnings on an investment's principal.

capital gains

The profit made when any chargeble asset, including stocks, is sold. If a loss is made it is called a Capital Loss.

capital gains tax

Tax payable at a rate equivalent to the taxpayer's highest rate of income tax on any gains over the CGT allowance (£10,100 in 2010/2011) from the sale, transfer or disposal of securities or other asset subject to this tax.

capital growth

The increase in an investment's capital value excluding all income.

capitalisation issue

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.

cash bonus

An extra dividend paid out of exceptional profits which is in addition to a normal dividend.

cash 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.

cash offer

An all cash offer, usually in a company takeover.

cash settlement

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).

CAT standards

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.

certificate

A legal document holding information on the holder and the number and type of shares held by the named person on the document.

change

Indicates the % or pence rise or fall of a security during a given time period.

Chinese walls

Artificial barriers to the flow of information set up in large firms to prevent the movement of sensitive information across departments.

cleared funds

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.

closing price

The price quoted at close of business or close of trading session.

closing purchase

A transaction in which a writer purchases an option having the same terms as an option which he has previously sold, thus terminating his liability as a writer.

collective investment

A generic term encompassing Authorised Unit Trusts, Insurance and Pension funds, OEICs and Investment Trusts.

commission

The charge made by a stockbroker for buying and selling securities on a client's behalf. Varies from broker to broker.

commodity

A raw material traded on a commodities market for example gold/silver.  Commodities are used in the production of goods. 

common stocks

Securities that represent an ownership interest in a corporation, usually US.

company reports

A statement of the financial condition of the company and its activities over the past financial year. See 'annual report & accounts'.

Compliance Department

Individuals entrusted with ensuring that a financial institution is compliant with the Financial Services & Markets Act 2000.

Compliance Oversight

Person appointed within an authorised firm to be responsible for ensuring compliance with the rules.

compulsory acquisition

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.

consideration

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 the Inland Revenue. 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 or PEPs.

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.

contract

An agreement incorporating conditions between you and the service provider.

contracts for difference (CFDs)

This is an agreement between a client and a provider to exchange the difference between the opening and the closing value of the contract.

 

contract note

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.

contributions

Payments made into a pension, ISA or PEP.

conversion

In relation to shares, this means the conversion of one class of shares into a different class of shares.

conversion ratio

This ratio is the number of warrants that must be held and exercised to buy or sell a single unit of the asset e.g. one share. A higher conversion ratio will produce a lower warrant price.

convertibles

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.

corporate action

An activity initiated by a company that affects the nature and/or quantity of stock that you hold as a shareholder e.g a rights issue is a common type of corporate action.

corporate bonds

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.

coupon

The rate of interest attached to a bond or loan stock that an investor will receive until redemption.
covered warrant - A covered warrant is a derivative issued by a financial institution. It gives the holder the right, but not the obligation, to buy (call) or sell (put) an underlying asset which could be a share or bond or index at a specified strike price during or at the end of a specified time period.

CREST

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.

cum

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.

currencies

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 You Can Invest' figure until they reach settlement when they will be debited/credited from your 'current cash balance.'

current liability

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.

current yield

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.