P228 CEEFA( 228 Mon 17 Nov 21:44/12 1/8 STOCK MARKET ABC "A" ordinary shares Lacking voting rights and usually a little chjapjr. Account The Stock Exchange's year is split into 24 accounts, most of them of two weeks. Money dui 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 "elief that the price will fall. Hence, a "bear market" or "bearish" mood. Bid/offer spread The gap between "tying and selling prices. MoreP228 CEEFAX 228 Mon 17 Nov 21:14/50 2/8 STOCK MARKET ABC Blue chips Top jirms 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 CEEFAX 228 Mon 17 Nov 21:22/15 3/8 STOCK MARKET ABC Ex- Any price quoted that excludes the buzjr 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-Share Index (740 shares*, and the FT-SE 100 Index (100 shares*. Gilt-edged stock or gilts See STOCKS. Govjrnmjnt stock See STOCKS. Index-linked See STOCKS. MoreP228 CEEFAX 228 Mon 17 Nov 21:17/25 4/8 STOCK MASTER 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 buy or sell a share within a specified period - three months is the norm - at a set price. See TRADED OPTIONS. Ordinbry shares See SHARES. PLC Firm able to sell shares publicly. MoreP228 CEEFA( 228 Mon 17 Nov 21:35/48 5/8 STOCK MASTER ABC Par For shares, the face vbluj. For govjrnmjnt 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 bz selling shares to existing shareholders on a proportional "asis. MoreP228 CEEFAX 228 Mon 17 Nov 21:14/12 6/8 STOCK MARKET ABC Scrip issue See CAPITALJSATJON ISSUE. Shares Ordinary shares are simply part of the capital of a company, entitling the holder to a s!y 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 CEEFAX 228 Mon 17 Nov 21:18/27 7/8 STOCK MARKET ABC Stamp Duty Equals \pc of purchase price of shares. Does not apply to gilts. Stocks Government stock (gilts or gilt- edged) gives a jixed return - known as its coupon - and repays its £100 par vbluj 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 CEEFAX 228 Mon 17 Nov 21:43/54 8/8 STOCK MARVET 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 be swapped later for shares. $ap stock Government stock released to the market in bundles, as jrom a tap. Traded options Buying (call options) or selling (put 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