EXPLANATION OF FINANCIAL TERMS
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E111
A form, obtainable from your
local post office, that grants you basic medical cover if you have a mishap on
a journey in continental Europe.
EGM
Extraordinary general meeting.
Any official gathering of shareholders other than at the annual meeting.
Earnings cap
The salary limit on which pension
contributions and benefits are based. For 1997/98 the cap was £84,000. It
affects contributors to personal pensions and members who joined a final salary
scheme after June 1, 1989.
Enterprise Investment Scheme
A scheme that provides income
and CGT relief for people prepared to risk investing in a single unquoted or AIM-listed
trading company. Investors can become directors of the EIS companies in which
they invest. Maximum investment is £150,000 a year.
Equity
Another word for a share.
Equity release
A scheme by which older homeowners
seek to unlock part of the value of their property. They use the capital to boost
their income by taking a special interest-only loan against the value of the house.
Anybody considering this type of loan, must pay particular attention to the small
print so they do not receive any nasty surprises later. Professional advice is
recommended.
Ethical Investment
Some investment funds have
a restricted investment policy which does not allow them to invest in shares of
certain types of companies, such as those involved in the production of armaments,
tobacco or alcohol.
Euro
The new European currency.
Euro can also refer to a eurobond. This does not mean a European bond in money
market speak. It refers to a bond issued in a currency other than that of the
country in which it was issued.
Execution-only
A cheap dealing facility with
no research or advice attached.
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