Called up Share Capital
The ‘nominal’ value of the shares of a company that are issued and fully paid up.
Capital Gains tax (CGT)
A tax on any profit you make from selling investments. Profit made from the disposal of assets over and above the CGT exemption in any one year.
When money from a company's reserves is converted into shares and then distributed to shareholders in place of a cash dividend. Also known as a bonus or scrip issue.
A restructuring of a company’s share capital, returning capital to shareholders. This can be done, for example, by converting bonds or Ordinary Shares into redeemable preference shares and might happen when a company is experiencing serious financial or operating problems. For example, the loss of a major customer or the danger of an imminent bankruptcy.
Cash flow is a measure of company's financial health, looking at how much cash a company is receiving compared to how much it is paying out over a given period of time.
Cash Flow Statement
Gives a summary of a company's cash flow over a given period of time.
Cash Offer (or Share Offer)
These happen when there is a company takeover. Shareholders receive either cash in place of their shares in the company that is being taken over, shares in the new company or a mix of both.
Certificated Deal or Trade
Share certificates can be issued to shareholders directly by company registrars. A certificated deal or trade is when you buy or sell shares held in the form of certificates in your name.
CHAPS (Clearing House Automated Payment Service)
A UK bank-to-bank same-day payment service in Sterling. There is usually a charge for using it.
Child Trust Fund
A long-term tax-free savings Account for children born between 1 September 2002 and 2 January 2011. It is no longer possible to open a new Child Trust Fund.
Any item that can be bought and sold. Taken to refer to Exchange-traded items, including sugar, coffee, tin etc.
Company Pension Scheme
A pension scheme set up by an employer to provide employees with retirement benefits. Also known as occupational pension schemes.
Where shares are traded before the admission to trading date, as the name implies these trades are ‘conditional’ on the company being listed and can only settle once trading has become unconditional; i.e. everyone can buy and sell them.
Legal term for the financial value of a deal or trade.
Consolidated Tax Certificate (CTC)
A certificate that details all dividend and income payments received in a tax year. We issue these for Investment Dealing Accounts (in which investments are not sheltered from tax) to help you complete your tax return.
When a company reduces the number of shares it has in circulation by consolidating its share capital. This reduces the number of shares a shareholder has but usually results in each new share having a higher value than before.
Consumer Price Index (CPI)
A percentage measure of changes in the price level of consumer goods and services. It is based on the changing price of a ‘market basket’ of representative items that a household might buy.
A document giving all the details of an investment deal made on your behalf, usually sent no later than the next working day after your deal has been made.
When one class of shares in a company is converted to another. For example, as part of a Bonus Issue you might receive Subscription Shares that give you the right to convert to Ordinary Shares at some point in the future.
A corporate action is an event initiated by a company that affects the shares issued by the company. Examples include takeovers, rights issues, demergers, scrip dividends and conversions. Corporate actions can have a considerable effect on shareholders and can change the number of shares you hold in the company. They often need approval from shareholders.
A bond issued by a company.
A tax paid by limited companies on their profits.
The other party to a deal.
A regular payment received by a bondholder over the lifetime of the bond. The coupon rate is shown as a percentage of the face value of the bond.
Ratings that assess how likely it is that a company or government will be able to repay its loans (for example in the form of bonds it has issued) or to keep up the interest payments on those loans.
The people who a company owes something to – usually cash or a claim to services.
Crest is the UK and Ireland's electronic registration and settlement system for share trading. Crest matches trades against payments and tells the company's registrars what names to add to the share register and which ones to delete.
Crest Depository Interest (CDI)
A Crest Depository Interest (CDI) is a UK security that represents a share traded on an exchange outside the UK. For each share available as a CDI Crest has the underlying share held in its name. Trades in CDIs can be settled through Crest just like a regular share. The underlying shares are held on trust by Crest for the owners of the CDI, who have full economic rights over them.
Crest Transfer Form
This is the official form for transferring certificated share holdings to a Crest member to be held by that Crest member. You will complete a Crest Transfer Form if you want to transfer any certificate share holdings in your name to an online trading Account with Alliance Trust Savings.