Core Capital
Core capital is composed of disclosed reserves and common stock. It can also include non-cumulative, non-redeemable preferred stock. As well as Core Capital, banks also use instruments to accumulate Tier […]
Share capital
All the different types of shares issued by the company
Split capital investment companies
Investment companies with more than one type of share capital also called a split capital investment trust. Each type of share capital will have a different share. For example, all the dividends of […]
Market capitalisation
The value of all the shares in issue of a company, calculated by multiplying the share price by the number of shares in issue.
Treasury shares
Shares bought back by a company and held on its balance sheet rather than being cancelled. Treasury shares are not included in calculations of net asset value and market capitalisation.
Growth investing
Growth investing – Investing in companies that are growing by more than the market appreciates A growth company is anticipated to grow at a rate equal to or greater than […]
Additional Tier 1 or AT1
Additional Tier 1 or AT1 – in addition to a bank’s core capital or Tier 1, it may also use other additional forms of capital to ensure its capital adequacy. Tier 1 […]
ZDP cover ratio / Zero Dividend Preference share cover ratio
The ZDP cover ratio / Zero Dividend Preference share cover ratio is an indicator of the likelihood of a split capital company being able to repay its zero dividend preference […]
Individual Savings Account
An individual savings account is a tax advantageous savings vehicle for UK savers over the age of 18. The amount of money you can contribute each year is limited. Once inside […]
Investment trust definition
An investment trust is a company domiciled in the UK. (see Investment Company ) Investment trusts must: invest in shares, land or other assets with the aim of spreading investment risk, […]
