The City of London mechanism
for guaranteeing the success of a share issue by agreeing to buy up the stock
if no-one else will.
Unit trust
A fund that invests in a portfolio
of shares on your behalf. For a small outlay you get exposure to a wide variety
of shares. The unit trust managers deduct varying degrees of charges from your
investment to pay for their expertise. The fund is divided into units which rise
and fall in line with the value of the underlying assets.
EXPLANATION OF FINANCIAL TERMS