P228 CEEFAX 228 Mon 10 Nov 21:21/09 1/8 STOCK MARKET ABC "A" ordinbry shares Lacking voting rights and usually a little cheaper. Account The Stock Exchange's year is split into 24 accounts, most of them of two weeks. Money due on dealings is not paid until the end of an account, which means that shares may bj bought and sold again without paying for them. Bears Investors who sell in the belief that the price will fall. Hence, a "bear market" or "bearish" mood. Bid/offer spread The gap between buying and selling prices. MoreP228 CEEFAX 228 Mon 10 Nov 21:22/24 2/8 ]] STOCK MARKET ABC Blue chips Top firms and their shares. Bulls Investors who buy in the belief that the price will rise. Hence, also, a "bull market" or "bullish" mood. Call options See TRADED OPTIONS. Capital Gains Tax (COT* Levied on any capital gains in excess of £6,300 in a single tax year. Capitalisation Issue A free issue of shares to shareholders in proportion to their holdings whjnjvjr a company wants to "capitalisj" excess resjrvjs. MoreP228 CJEFA( 228 Mon 10 Nov 21:22/51 3/8 STOCK MASTER ABC Ex] Any price quoted that excludes the buyer jrom a dividend or an issue of shares: ex-dividend (or XD), ex-rights (XR*, or ex-capitalisation (XC). FT Indices Best known are the Financial Times Industrial Ordinary Index (also known as the FT 30), the FT-Actuaries All-Shari Index (740 shares), and the FT-SE 100 Index (100 shares*. Gilt-edged stock or gilts See STOCKS. Government stock See STOCKS. Index-linked See STOCKS. MoreP228 CEEFAX 228 Mon 10 Nov 21:13/15 4/8 STOCK MARKET ABC Market-makers Dealers committed to making a price - quoting buy and sell prices - in a minimum number of shares. New time dealings Buying or selling in the last two days of one account for settlement (payment) in the next. Options The right to "uz or sell a share within a specified period - three months is the norm - at a set price. See TRADED OPTIONS. Ordinary shares See SHARES. PLC Firm able to sell shares publicly. MoreP228 CEEFA( 228 Mon 10 Nov 21:23/32 5/8 STOCK MARKET ABC Par For shares, the face value. For government stock, £100. For partly-paid stocks and shares, the issue price. Perks Shares in some companies confer certain privileges on shareholders. Preference shares See SHARES. Put options See TRADED OPTIONS. Rights issue A means of raising fresh capital by selling shares to existing shareholders on a proportional basis. MoreP228 CEEFA( 228 Mon 10 Nov 21:28/57 6/8 STOCK MARKET ABC Scrip issue See CAPITALISATJON ISSUE. Shares Ordinary shares are simply part of the capital of a company, entitling the holder to a say in its running (via votes at the annual meeting) and to a share of any profits (dividends). "A" ordinary shares carry no voting rights. Preference shares have first call on any profits and, if cumulative, require dividends unpaid one year to be paid in another year. Stags Buzjrs of a new issue of shares bent on selling at once at a profit. MoreP228 CJEFAX 228 Mon 10 Nov 21:11/24 7/8 STOCK MARKET ABC Stamp Duty Equals \pc of purchase price of shares. Does not apply to kilts. Stocks Government stock (gilts or gilt- edged) gives a jixed return - known as its coupon - and repays its £100 par value at maturity. See PAR. The market price fluctuates, usually in opposition to the prevailing level of interest rates. Undated stock simply pays interest and will njvjr bj redeemed. Index-linked stock pays a rate of interest tied to the retail price index. MoreP228 CEEFA( 228 Mon 10 Nov 21:11/40 8/8 ] STOCK MASTER ABC Stocks (cont) Companies issue debenture stock, giving holders a prior claim on their assets, as well as unsecured loan stock, which does not. Convertible loan stock may bj swapped later for shares. Tap stock Government stock released to the market in bundles, as from a tap. Traded options Buying (call options) or selling (pzt options* shari options (see OPTIONS) before their life is up. XC, XD, XR See EX]. Yield The annual return (dividend) on a stock or share at the current price. More