EXPLANATION OF FINANCIAL TERMS
Occupational pension scheme
A scheme provided by an employer,
often called a company scheme.
Off exchange is an unregulated
small companies stockmarket operated outside the Stock Exchange. Companies quoted
on Offex carry a much higher risk.
A fund that is outside UK jurisdiction,
for example in the Channel Islands or Luxembourg
Investments that are sold and
run by companies licensed by an offshore tax haven, such as Jersey, Guernsey,
and the Isle of Man.
Open-ended investment companies
are expected to take over from unit trusts in the next few years. The main difference
is that they will have a single price at which savers can invest or redeem their
holdings. However, investors may still have to pay a charge in addition to the
stated price, an expense which is currently included in the difference between
the bid and offer prices on unit trusts.
Open market option
The freedom of personal pension
holders at retirement to transfer their pension fund to which ever insurer offers
best annuity rates.
The right, but not the obligation,
to buy or sell shares at a future date. If you buy a call option you think the
price will go up and you agree to buy the shares. Conversely if you take out a
put option you are giving yourself the right but not the obligation to sell. Plainly
the owner of a put option thinks the share price will fall.
The Stock Exchange Electronic