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49 Cards in this Set
- Front
- Back
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How are divídenos paid |
Paid from company profits after corporation tax Not all profits go to dividend some kept for investments= dividends vary |
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Dividend for ordinary and preference shares |
Ordinary share dividends vary Preference share dividends fixed |
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Which shares gets paid first on liquidation |
Preference shares |
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Best stock indices to track performance |
FTSE all share index S&P 500 |
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Nikkei 225 |
Japan |
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Heng seng |
Hong kong |
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Straits times index |
Singapore |
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Xetra dax index |
Germany |
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CAC40 |
France |
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Uk indicies |
FTSE100 FTSE all share 98% market |
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Straits times index |
Singapore |
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Xetra dax index |
Germany |
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CAC40 |
France |
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Uk indicies |
FTSE100 FTSE all share 98% market |
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USA indicies |
Dow Jones industrial average(DJIA) - 30 stock 25% US equity market not suitable to track performance NASDAQ composite - technology companies S&P 500- wider view good to compare performance |
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Equities taxation |
Dividends-income tax Gains-CGT |
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What allowance can you have if dividends main source of income |
12,500 personal allowance + 2,000 dividend allowance = £14,500 |
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Equities features |
Rise income and capital long term Shorter = insecure |
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Describe the two markets |
Primary market- float (sell) shares 1st time to raise money for businesses Secondary market- trade shares |
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Initial public offering |
Float shares approved by uk listing authority (UKLA) |
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Who can’t go on stock exchange |
Small new businesses list on AIM Alternative investment market |
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Who can’t go on stock exchange |
Small new businesses list on AIM Alternative investment market |
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Trade costs |
Broker commission (flat or %of trade value) SDRT 0.5% (not for AIM) Levy of £1 on trades over £10,000 (PTM) |
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Who can’t go on stock exchange |
Small new businesses list on AIM Alternative investment market |
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Trade costs |
Broker commission (flat or %of trade value) SDRT 0.5% (not for AIM) Levy of £1 on trades over £10,000 (PTM) |
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PTM |
Panel of takeovers and mergers |
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Link between performance and interest rates |
Perform bad- slow economic growth = rising interest rates Perform good- good economic growth =falling interest rates |
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Two main classes of shares |
Ordinary and preference shares |
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Features of preference shares |
Less risky than ordinary shares Less risky- less profitable Issued by financial institutions Fixed dividends- NOT guaranteed |
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5 preference shares |
Non cumulative Cumulative Participating Redeemable Convertible |
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Non cumulative preference shares |
Fixed dividend - not paid right is lost |
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Cumulative preference shares |
Dividend not paid carried forward and has to be paid before next year dividends and ordinary shares dividends |
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Participating preference shares |
Fixed dividend and holder can participate in the profits of the company and receive additional dividend which is a portion of the ordinary share dividends |
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Non cumulative preference shares |
Fixed dividend - not paid right is lost |
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Cumulative preference shares |
Dividend not paid carried forward and has to be paid before next year dividends and ordinary shares dividends |
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Participating preference shares |
Fixed dividend and holder can participate in the profits of the company and receive additional dividend which is a portion of the ordinary share dividends |
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Convertible preference shares |
Convert to ordinary shares Track ordinary share prices so that the ordinary share value are not greater than preference shares making conversion valuable |
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What shares are rare on LSE |
Deferred shares and non-voting shares |
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What shares are rare on LSE |
Deferred shares and non-voting shares |
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Ordinary shares |
£1 shares NOT REEDEMABLE |
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Ordinary share payment on liquidation |
After preference share and debt payments, residual value shared |
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Other types ordinary shares |
Redeemable (B shares) ‘A’ ordinary shares Deferred shares |
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Other types ordinary shares |
Redeemable (B shares) ‘A’ ordinary shares Deferred shares |
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B shares |
REEDEMABLE shares- returns capital to shareholders |
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A ordinary shares |
Non voting |
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Other types ordinary shares |
Redeemable (B shares) ‘A’ ordinary shares Deferred shares |
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B shares |
REEDEMABLE shares- returns capital to shareholders |
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A ordinary shares |
Non voting |
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Deferred shares |
Dividend deferred for years |
