EXPLANATION OF FINANCIAL TERMS
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Tangible Assets
The combined total of fixed assets and long term investments.
Tapering relief
A new way of calculating capital
gains tax. An investor who realises chargeable gains after 5 April 1998, will
be subject to tax relief which tapers according to how long he has previously
owned the assets. Investors who have owned assets for two years or less from this
date will get no tapering relief, while those who have owned assets for 10 years
or more will only have to pay tax on 60 per cent of their chargeable gains. All
assets bought before 17 March 1998, will be treated as though they have been owned
for exactly one year before 5 April 1998.
Tax Exempt Special Savings
Scheme or Tessa
A building society or bank
savings account that pays interest tax free provided investors leave their capital
in the account untouched for five years. Up to £3,000 can be invested in
the first year, £1,800 in the next three years and £600 in the last
year. The sale of new Tessas will end on 5 April 1999, but schemes which have
already been started before then can continue as normal.
Tax year
The period running from
April 6 to April 5 in the following year, which is used to calculate individuals'
liability to tax.
Technical Analysis
A method of researching investment potential by concentrating on the share price
and its relative trends and performance, rather than the underlying financial
and business characteristics of the company issuing the securities.
Tender offer
A share offer in which the
buyers have to specify what price they are prepared to buy at.
Term assurance
The same as term insurance.
The policy pays out if you die within a specified time period.
Term insurance
Insurance that pays out
if you die within a specified period of time.
Tipsheet
A newsletter usually for private investors, which contains recommendations on
specific companies in which to invest. Usually produced to follow a specific
investment style or criteria.
Traded options
Not for the inexperienced.
The right to buy and sell options over shares. Take advice on the financial consequences
of using such financial instruments.
Total return
Fund managers sell their wares
by advertising the total return. This amounts to the yield plus the capital growth
of shares or unit trusts.
Tracker fund
A fund that aims to provide
a safe return by investing pro-rata in shares of one of the key market indexes.
Turnover
The sales, or gross revenue, of the company during the financial period.
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