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52 Cards in this Set
- Front
- Back
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Absolute owner |
The sole owner of a piece of property, such as a building, vehicle, or piece of equipment. |
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Abstract of title
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A document which summarises all the title deeds to a property, such as a house. It is drawn up for the seller when a property is being sold.
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Accounting date |
Organizations prepare their annual accounts covering a period of 12 months. The last day of the period is called the accounting date.
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Accrual rate
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The rate by which a pension from an earnings-related occupational pension scheme builds up from one year to anoher. The rate is shown as a fraction or a percentage of the member's final yearly salary.
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Accrue/Accrual
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If something is acrruing, it is building up day by day. If an organization owes money for goods and service but has not received a bill up to the date it prepares its accounts, it will estimate what it owes. It will then include the debt in its account. This estimated liability is called an accrual.
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Accrued income security
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This is a security (investment) which pays interest at regular intervals. When it is sold, interest may have built up and this interest will be paid to the new owner. Interest built up like this is called accrued interest.
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Accumulation date
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The date when income will be credited to a unit trust which reinvests its income (an accumulation unit), instead of paying the income out to the investors.
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Accumulation unit
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The type of unit trust which reinvests the income it earns, instead of paying it out immediately to the investors. |
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Actuary
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An expert on pension scheme assets and liabilities, life expectancy and probabilities for insurance purposes (the likelihood of things happening); works out whether enough money is being paid into a pension scheme to pay the pensions when they are due.
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Ad valorem
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If a duty is ad valorem, the duty varies with the price of the asset which is being transferred.
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Additional voluntary contribution |
People in occupational pension schemes can pay in extra money to increase their pension benefits. The extra money they pay in is an additional voluntary contribution.
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Ademption
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This happens when someone is left something in a will, but the item no longer exists, so it cannot be bequeathed. |
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Administration order
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If a court appoints someone to look after a company's affairs, the court issues an administration order, giving the person appointed power to run the company. |
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Administrator
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Someone who: has been appointed to manage the affairs of a bankrupt business; or has been appointed to manage the estate of someone who has died without leaving a will. |
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Advance corporation tax
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Until 1999, this tax was paid by companies on the dividends they paid. The advance corporation tax paid could usually offset against the corporation tax due on the company's profits. |
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Annual Equivalent Rate (AER)
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Quoted by financial institutions, such as banks, to show how much the interest rate would be if the interest was worked out just once a year. It is intended to make it easier for people to judge how much interest they pay (or receive) when it is being worked out more than once a year. It is also intended to make it easier to compare different financial products. |
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Affidavit
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A written statement which is sworn (before someone authorized by the court) to be true by the person signing it. |
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Allocation rate
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When money is paid into a fund (such as a pension fund), the allocation rate is the percentage of the money left which can be invested after the charges have been taken off. For example, if the charges were 2%, the allocation rate would be 98%. |
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Allotment |
An allotment of shares in a company gives the owner (of the allotment) an unconditional right to buy the shares at a fixed price. |
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Alternate director |
If a director appoints someone to take his or her place, the substitute is called an alternate director. |
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Annual accounts |
The summary of an organization's financial transactions during the year covered by their accounts, and a "snapshot" of the assets and liabilities at the end of the year. |
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Annual general meeting (AGM) |
The yearly meeting of the members of an organization which must be held to meet legal conditions. The annual accounts are presented for approval at this meeting. |
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Annual management charge
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A yearly charge made by the managers of unit trusts or investment trusts; usually a percentage of the value of the funds being managed.
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Annual payment
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An amount paid out every year, such as an annuity. It may be split up into smaller amounts and be paid out more frequently than once a year.
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Annuity
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An amount paid out every year to someone. The money usually comes from an insurance policy. It can be split up into smaller amounts and be paid out more frequently, such as monthly. It is usually paid for the rest of the beneficiary's life.
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Annual percentage rate (APR)
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Intended to give people a more accurate idea of how much they are being charged when they borrow money.
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Arbitrage
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The fee that banks charge their customers for arranging an overdraft facility.
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Articles
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A company's articles set out its rules. The articles form part of the memorandum and articles of association.
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Assets
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Things which are owned, such as buildings, vehicles, stock, and money in the bank.
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Assignment
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The formal transfer of rights to something. For instance, a bank's customer may assign, to the bank, the right to receive the benefits from a life insurance policy to give the bank security for a loan.
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Attorney
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A person appointed to act for another person (such as when someone is unable to look after their own affairs). A formal document called a power of attorney is used to appoint the attorney.
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Audit
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An independent examination of an organization's records and financial statements (reports and accounts) to make sure that: the financial statements show a fair reflection of the financial position at the accounting date; the income and spending is shown accurately; the financial statements meet any legal conditions; and the financial statements are drawn up clearly.
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Auditing standards
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The organizations which regulate auditors, such as The Institute of Chartered Accountants in England and Wales, set standards which have to be followed during an audit. These are called auditing standards.
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Auditor's report
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A report and opinion, by an independent person or firm, on an organization's financial records.
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Authorized share capital
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The highest amount of share capital that a company can issue. The amount is set out in the company's memorandum of association. |
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Bankers Automated Clearing System (BACS) payment
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A system for sending money electronically between banks. A BACS payment happens when money is sent electronically from one bank account to another.
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Bail
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If someone is given bail, they are let out of prison until their court case. Usually someone has to pay, or promise to pay, an amount of money as a condition of bail being granted. If the accused person does not appear at the trial, the court can keep the money put up for bail.
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Bailee
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The person or organization which looks after valuable items to keep them safe for the owner.
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Bailiff
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An officer of the court; carries out the court's orders, such as taking goods belonging to a debtor and selling them to get money to pay the debts; can also personally deliver (serve) court documents on people.
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Bailment
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This involves transferring possession of goods from the owner to someone else. The ownership of the goods is not transferred.
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Bailor
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The owner of valuable items which are in the possession of another person or organization for safekeeping.
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Balance sheet
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A summary of an organization's financial position. It lists the values, in the books of account on a particular date, of all the organization's assets and liabilities. The assets and liabilities are grouped in categories, to paint a picture of the organization's strengths and weaknesses.
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Balloon payment
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Some loan and finance agreements have lower repayments than normal in return for a high final payment. This is called balloon payment.
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Bankruptcy
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If someone cannot pay their debts when they are due to be paid, a court may issue a bankruptcy order against them. This order takes ownership of the debtor's property away from the debtor and allows much of the property to be sold. The money raised is divided between the creditors following strict rules.
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Bare trustee
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Someone who holds property "on trust" for another person until asked to return the property.
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Barter
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A way of paying for things, without using money, by exchanging goods.
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Basic-rate tax
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Once you have used up all your tax allowances and all your lower-rate tax band, you pay basic-rate tax. The basic rate is 22% at the moment (2000).
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Basic state pension
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The retirement pension the Government pays to people who have paid enough national insurance contributions. Some people may receive a reduced basic state pension because they have not paid enough contributions.
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Bear
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Someone who expects share prices to fall in the future and sells shares now so that they can buy them back later at a lower price.
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Bearer
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The bearer of a document is the person who has it in their possession.
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Beneficial interest
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If something really belongs to a person, even though they do not legally own it, they have a beneficial interest in it. If, for instance, parents hold an investment on behalf of their child, they are the legal owners but the child is the beneficial owner of the investment.
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Beneficiary |
Someone who benefits from a will, a trust, or a life insurance policy. |
