Copy of `Scandia - Glossary of economics`

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Scandia - Glossary of economics
Category: Economy and Finance
Date & country: 20/09/2007, UK
Words: 626


Unlisted Securities
Securities which are not listed on an organised stock exchange.

Utility
A term used to describe the statutory authorities responsible for providing services to the community such as water, gas and electricity.

Valuation
The value or worth of a portfolio of investments or life/pension policies recorded on a statement. Not necessarily the amount available if cashed-in.

Value Added Tax
A tax on individual goods and/or services, which is added on to the retail price of those goods or services.

Value Date
The official date when cash or securities are transferred, i.e. when they become good funds to the depositor.

Value Investor
One who seeks to buy shares when they are under priced and to take profits when they appear over valued. The Price/Earnings Ratio is a key valuation measure.

Value Stocks
Shares in companies that are considered to be good value. Usually they are trading at a price that is low either historically or relative to its peer group.

Variable Rate Mortgage
A mortgage where the interest rate can move up and down. It is usually based on base rate.

Variance
A measure of dispersion of returns on investments based on deviations from the average or mean value.

Venture Capital
Capital which is subject to more than a normal degree of risk, usually associated with a new business or venture and particularly in relation to new technology projects. Also called Risk Capital. See also Development Capital.

Volatility (portfolio or fund)
Volatility is a statistical method that measures how much a series of values move up and down around its average. The higher the volatility number, the less consistent the historical performance has been.

Voting Right
A right enjoyed by a shareholder to participate in the affairs of the company by voting at its annual meeting or other policy making forum. See also Corporate Governance, Proxy.

Waiver of Premium
An optional feature on some life policies where the insurance company will pay the premiums if the policyholder becomes ill.

Weighting
The relative proportion of each of a group of securities or asset classes within a single investment portfolio. See also Overweight, Underweight.

Whole Life Policy
Life assurance that a customer pays throughout the whole of their life and that pays out whenever they die.

Will
A legal document which lays out how the estate is to be distributed after the death of the Testator. The estate is administered by Executors on death.

With Profits Bond
A single premium bond issued by a Life Company where a lump sum is paid into a with profits fund made up of shares, property, cash, fixed interest securities. With-profits bonds use a smoothing device to protect the investor from extreme fluctuations in market conditions.

With Profits Policy
A policy issued by a Life Company where premiums are paid into a with profits fund made up of shares, property, cash, fixed interest securities. With-profits bonds use a smoothing device to protect the investor from extreme fluctuations in market conditions.

Withholding Tax
The tax payable on payments such as dividends, interest and debt repayments, sent to foreign entities.

Wrap Account
This is the name given to an individual`s aggregated details available to a financial adviser via the Skandia online Wrap Service.

Wrap Service
This is an online service provider to Financial Advisers by Skandia to enable them to see details of their clients` Skandia holdings in an easy to use format.

Yield
A measure of the income received from an investment compared to the price paid for the investment. Normally expressed as a percentage.

Yield Curve
A visual representation of the term structure of interest rates. It shows the relationship between bond yields and maturity lengths. A normal or positive yield curve signifies higher interest rates for long-term investment, while a negative or downward curve indicates higher short-term rates.

Yield to Maturity
The yield provided by a bond which is held to its maturity date, taking account of both interest payments and capital gains or losses.

Zero Coupon Bonds
Discounted bonds which are issued with no coupon, i.e. there is no periodic income payment, and the yield to the bondholder is derived from the capital value of the bond at its maturity.

Zero Dividend Preference Share
A Share with a predetermined growth rate, but which does not pay dividends.