Capital shares
Shares that get the left over assets on a winding up but do not get a dividend.
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 […]
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 […]
Capital return
The capital return reflects the return generated by the move in the share price or net asset value excluding dividends or income. Performance is often quotes on a “Total Return” […]
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 […]
Free Cash Flow
Free Cash Flow is the cash generated by a business that is available after all expenses. from a debt investor’s point of view, it can be calculated by taking the […]
