M
Managed exit - The point at which management
and other investors enjoy a return on their investment, by
selling the business either on the stock market, to a competitor,
or to another institution such as a VCT. A Managed exit will
be initiated according to a careful strategic plan which is
often compiled with professional advice.
Management Accounts - Accounts which are
prepared for use when managing the business.
Market Capitalisation - The value of a company
measured by the total stock market price of its shares, calculated
by multiplying the number of shares by the current market price
of a share.
Micropal Star Ratings - Micropal is an independent
Mutual Fund analyst which monitors all the UK's unit trust
and OEICs and awards stars on a scale of 0-5, with the highest
scores being awarded to the best performing funds.
Monetary Policy - Influencing an economy
through control of the money supply.
Money Purchase Scheme - Also known as Defined
Contribution Scheme. A scheme where the amount of a member's
retirement benefits depends on the contributions paid into
the scheme in respect of the member. The rate of the contributions
is decided by the employer.
Mutual company - A company which has no shareholders
but is owned instead by its with-profits policyholders.
Mutual Fund - An open-ended fund operated
by an investment company which raises money from shareholders
and invests in a group of assets in accordance with a stated
set of objectives. Shares are issued and redeemed on demand.
N
NASDAQ - Index of the leading technology
stocks in the USA.
National Insurance - Payments made out of
earnings by employees, employers and the self-employed to the
Government that entitle you to a state pension and other benefits.
National Insurance Rebate - The amount by
which employers' and employees' National Insurance contributions
are reduced for employees who are contracted out of SERPS by
virtue of membership of an occupational pension scheme. Alternatively,
it is the payment made by the Department of Social Security
as minimum contributions to a personal pension scheme.
Negative Equity - This is when the market
value of your house is less than the amount outstanding on
your mortgage.
Net Yield - The return on an investment after
tax has been deducted.
O
Occupational Pension Scheme - A legal contract
set up by an employer to provide pensions and/or other benefits
for one or more employees on retirement, death or leaving pensionable
service.
OEIC - Open Ended Investment Company - Managed
funds which hold a portfolio of investments which you can buy
into. They issue shares instead of units and normally quote
a single price.
Offer Price - The price at which you buy
units from a unit trust manager.
Offshore Funds - Funds based outside the
UK for tax reasons.
OMO - Open Market Option - Your right at
retirement to buy an annuity from a provider other than the
one who has administered your pension fund.
OPAS - The Occupational Pensions Advisory
Service, voluntary organisation which advises on problems with
any type of pension scheme other than state schemes.
OPRA - The Occupational Pensions Regulatory
Authority, body with wide ranging powers set up to regulate
the occupational pensions industry
Option - In investment terms, a contract
giving the right to buy or sell commodities, currencies or
shares at a fixed date in the future at a fixed price. In pension
terms, the choice of how to take your fund (e.g. lump sum and
pension or pension) and the right at retirement to buy an annuity
from a provider other than the one who has administered your
pension fund. |
