975 Tax Certificate

(Formally referred to as a Section 352 Tax Certificate). The Section 975 Tax Certificate includes the following information:

  • Gross amount of Interest (before deduction of tax) paid in the tax year.
  • Amount of tax deducted.
  • Net amount of interest after deduction of tax.

The certificate may help you complete your income tax return, and it will be accepted by HM Revenue & Customs (HMRC) as evidence of tax deducted if you claim back tax.


Account linking

Do you have more than one account? You can link your accounts and then access them from one username and login and receive one consolidated statement for your accounts. It's easy to do online, login with your single account details (it's not possible to link from a joint account). Then go to Account Administration/Link My Accounts.


When one company takes over another by purchasing its assets and/or shares.


The Alternative Investment Market is a sub market of the London Stock Exchange. The AIM consists of smaller UK and foreign companies and offers a more flexible regulatory system than that of the LSE and other exchanges within the European Union.

Annual General Meeting (AGM)

This is an annual meeting called by the directors of a company that allow shareholders to stay informed and involved with company decisions and workings.

Asset transfer form

A form provided by us, which can be used to request the transfer in of an account and/or assets from another provider.


Bed & ISA

If you wish to transfer existing share holdings into an ISA this can’t be done directly, but we can help you sell them and re-purchase them within the ISA wrapper - this is called Bed & ISA. Some exceptions apply, for instance if you have recently taken the shares out of an employer’s share save scheme. For further details call our customer service team on 0345 607 6001.

Best bid

The highest price any buyer has declared they’re willing to pay for a specific security at a given time, determined by the current quotes and orders in the trading system.

Best execution

When a financial services firm carries out transactions on their clients' behalf, taking all reasonable steps to obtain the best possible result. This would take into consideration: account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.

Best offer

The lowest price any seller has declared they are willing to accept for a specific security at a given time, determined by the current quotes and orders in the trading system.

Bid offer spread

The two way quote which denotes the current best bid and offer prices available.

Bid Situation

When one company receives a takeover offer from another it can be said to be in a Bid Situation.

Blue Chip

A publicly traded company known for the quality and wide acceptance of its products, services and management, and for its ability to profit and pay dividends to shareholders.


A debt security issued by a government, or company as a means of raising capital. These generally entitle the holder to a fixed-rate of interest during their life and repayment of the amount of the bond at maturity.

Bond Price

The market price of a bond depends on the coupon rate, the market interest rate and the number of years to maturity. 

Bonus Issue

A Corporate Action whereby new shares are issued to existing shareholders. The new shares are issued proportionately to holders and are free of charge. The new shares may be in the same company or in a new company.

Book cost

The original cost of an investment generally used to compare against the current market value.


Capital Gains Tax (CGT)

A tax on profit made from the disposal of assets over and above CGT exemption in any one tax year.

Capitalisation issue

See Bonus Issue

Capital risk

The risk an investor faces that he or she may lose all or part of the principal amount invested.

Certificated trade

A certificated trade means that shares purchased or sold are represented in the form of paper certificates in the name of the shareholder rather than in electronic format in the nominee name of a broker. A share certificate is registered and issued to the shareholder directly from the company's registrar. We do not offer a service to buy paper certificates.

Change on the day

The difference between the previous day's closing price and the current price.

Closing price

The official closing price as published by the stock exchange.


The fee that a broker may charge clients for dealing on their behalf. For more information on our rates and charges visit our rates and charges page.


A raw material or primary agricultural product that can be bought and sold, such as gold, silver, crude oil, coffee.


The value of a transaction calculated by the number of shares traded multiplied by the agreed price per share. Charges such as commission and stamp duty are deducted or added accordingly to give the total cost or amount payable.

Consolidated Tax Certificate (CTC)

A CTC details all dividend payments received within a given tax year, which runs from April 6th through to the next April 5th.

Consolidated Tax Voucher (CTV)

Please see Consolidated Tax Certificate.


A corporate action event in which the number of shares in issue are reduced by a set factor. For example a 2:1 Consolidation would have the effect of halving the number of shares in circulation, doubling the nominal value and will affect the share price accordingly.

Contract note

Contract notes are supplied for each trade (stock and currency) and contain all the details of your transaction. These are stored within your online account for easy access and are published no later than the working day following the execution of the order.

Corporate actions

A corporate action is an event initiated by a company that affects the shares they issue. This includes a wide range of corporate actions, such as takeovers, rights issues, demergers, scrip dividends and conversions.


See Market Counterparty.


The regular interest payment received by the bond holder over the lifetime of the bond. The coupon rate is expressed as a percentage of the bond’s face value.

Covered warrant

Covered Warrants are a type of financial derivative issued by Global Investment Banks.

They grant their holder the right, but not the obligation to buy (Calls) or sell (Puts) a certain underlying asset, at a pre-determined price, on or before a pre-determined date.

Covered Warrants give investors the same exposure to movements in a security, index or currency with much less capital risk. Just like shares, warrants can be bought or sold at any time. Unlike shares, however they have a limited life span - between 3 months and 3 years at issue, after which the cash value (if positive) of the warrant is automatically paid out to the holder. Also, unlike shares, warrants are exempt from stamp duty.


The computer-based system which enables securities to be held and transferred in uncertificated form and which is operated by CRESTCo Limited.

CREST transfer form

This is an official form to be used for transferring certificated holdings to a CREST member - such as a broker - to then be held electronically. CREST transfer forms can also be used to facilitate the settlement of certificated sales.

Cum Dividend

Cum is Latin for 'with'. Used to indicate that the buyer of a security is entitled to the next dividend payment. 

Currency risk

Where an investment is made overseas by a sterling-based investor there is a risk that sterling may appreciate or depreciate against the overseas currency. For example, if sterling is strong against the US dollar any capital growth can be eliminated from investment in US stocks and the value of dollar dividends in sterling terms is eroded.

Currency can also affect an investment in individual securities. If you invest in a company that is dependent on exporting its product and the currency where the goods are manufactured appreciates it will affect the profitability of the company. Similarly depreciation of a local currency will increase the cost of imports.

(CFD) Contracts for Difference

A financial instrument whereby two parties agree to exchange the difference in value of an asset between the time at which the contract is opened and the time at which it is closed. A CFD is a derivative product.


Daily high

The highest price reached by a security or index during the day.

Daily low

The lowest price reached by a security or index during the day.


Dealers buy and sell securities on behalf of a broking firm (or investment bank) and their clients

Dealing password

This is an additional level of security for your online account. Your dealing password is required when trading, withdrawing or moving funds and when changing certain preferences. The dealing password can be turned off for placing equity and foreign exchange orders but is still required for other functions.


A type of long-term bond (loan) taken out by a company, which it agrees to repay at a specified future date. This is usually secured against specific assets (mortgage debentures) or through a floating charge on the firm’s assets.


A derivative is an instrument whose value depends on the performance of an underlying asset or security, which may be a commodity or a financial instrument.

Direct debit

A payment system in which the payer authorises the payee to take funds from their bank account.


The part of a company's profits after tax which is distributed to shareholders and can take the form of cash or shares.


Where a company operates a Dividend Reinvestment Plan (DRIP), existing shares are purchased in the market by investing the cash dividend and the trade is subject to dealing costs such as stamp duty and commission.

Customers holding shares within our nominee products are not able to participate in a company’s DRIP, however we offer our own automated Dividend Reinvestment Service which allows customers to reinvest cash dividends on whichever eligible stocks they select at a reduced commission rate compared to our standard dealing charges.



This stands for Electronic Price Information Computer (EPIC) code, which is a memorable code used to identify UK listed securities. For example the code for "Marks and Spencer Group Plc Ordinary 25p" shares is "MKS".


Earnings Per Share (EPS) is calculated as the net income attributable to ordinary shares for a specific period divided by the number of outstanding ordinary shares. Companies typically use a weighted average number of shares outstanding over reporting term.


This is ownership interest in a company in the form of common stock (Ordinary shares) or preferred stock.


Exchange Traded Product.


Euro - common currency of the European Union.

Exchange Market Size (EMS)

This is the maximum number of shares that the market makers are obliged to quote for a particular security. EMS is based on a percentage of the share's average daily turnover in the previous year.

Ex Dividend

The opposite of Cum Dividend, used to indicate that the buyer is not entitled to the next dividend payment. The day at which a stock ceases to be traded with the dividend is known as the Ex Dividend Date.

Execution only

An execution only broker trades only the instruction of the client and is unable provide any investment advice.

Ex Rights

After a company announces a rights issue their shares will be traded with rights included up to a specified “ex” date. On and after this date the shares are traded ex (without) rights.

Extended settlement

Settlement periods greater than T+2 are considered to be ‘extended settlement’, and can incur a premium on the Offer Price. Extended Settlement is only available on UK stock exchanges; the maximum allowed settlement period is T+20 days.


A stock exchange is an organised marketplace that provides access to capital and facilitates securities dealing through speedy and innovative trading platforms and services.


Fill or kill order

This is an order which must be executed immediately at a specified price or better. If this order cannot be dealt in the market it will be cancelled.

Final dividend

The dividend paid by a company at the end of the financial year.

Financial Conduct Authority

Financial Conduct Authority. This is an independent body which regulates the financial services industry in the UK.

Financial year

The year for which corporate tax rates apply. It runs from April 1st to March 31st. For the purposes of personal taxation the financial year runs from 6th to the 5th April.

Firm quote

The live market best quote, for a specific order size and settlement, provided by a market counterparty. On our website a firm quote is held for 15 seconds and the trade must be confirmed within that time frame. If the firm quote does expire then further quotes can be obtained by using the refresh quote button. Please note that neither client nor market counterparty is obliged to trade at the quoted price until the order is confirmed by both parties.

Foreign Exchange (FX)

Foreign exchange is the method of converting funds from one currency to another at an agreed exchange rate. Trading and TD SIPP accounts all offer the ability to perform foreign exchange transactions online in GBP Sterling, US Dollars, Euros and Canadian Dollars, Australian Dollars, Swiss Franc, Swedish Krona, Hong Kong Dollars and Singapore Dollars. See our rates and charges.

Forex Trading

An over the counter market where traders conduct foreign exchange transactions. Forex is also known as the foreign exchange market.


A Financial Spread Trading Account (FST) allows a client to place an agreement with a provider to exchange the difference between the open and closing value of the bet. With FST you’re simply speculating on the direction of the future price movements in an underlying instrument; you specify an amount you want to bet on each point movement.

FTSE™ MID 250 Index (FTSE 250)

Financial Times Stock Exchange Mid 250 Index comprises the share prices of the 250 companies that follow the top 100 (comprising the FTSE 100).

FTSE™ 100

An index of the share prices of the UK's 100 largest companies (by market capitalisation).


A fund is a collective investment such as a Unit Trust or OEIC (open ended investment company). Money is pooled together and invested in a range of assets such as shares and bonds, for example. This is done on your behalf by a professional Fund Manager.


These are securities or goods bought or sold at a fixed price for future delivery. There may be no intention to take them up but to rely upon price changes in order to sell at a profit before delivery.



Pound Sterling


Pence Sterling

Gilts or Gilt-Edged Securities

Debt securities issued on behalf of the government.


The Gross National Product (GNP) is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.


The total amount before deductions (e.g. before tax deductions).



A hedge is typically accomplished by making approximate offsetting transactions that will largely eliminate one or more types of risk. Hedging investors can use derivatives and covered warrants to hedge investments.


Income risk

Income can rise and fall and very often the income fluctuations can be even more important for investors than changes in capital values – at least in the short term.


A statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. For instance, the FTSE 100 and the S&P500 are examples of indices.

Indicative quote

This is a quote whose price and volume are not guaranteed.

Inflation risk

Inflation is the sustained increase in prices over time. The rate of inflation is a key factor in assessing all investment returns, most obviously for fixed interest investments. The higher the rate of inflation, the lower the real value of future payments of a fixed amount.


This refers to the inability of a person (or a company) to settle debts.

Interest rate risk

Interest rates can move due to a number of factors, some of these will affect short-term rates; others will affect rates across the yield curve and the shape of the yield curve.

International Order Book (IOB)

The International Order Book is an order-driven trading service for the depository receipts of international securities. There are Global Depository receipts (GDR's) and American Depository Receipts (ADR's) trading on the IOB, mostly from developing countries in central and Eastern Europe and Asia.

International Retail Service (IRS)

An LSE order and quote-driven trading service for international blue chip and large cap companies (primarily European and US). Prices are quoted in pounds sterling and shares are held in the form of Crest Depository Interests (CDIs).

International Securities Identification Number (ISIN)

A 12-character, alphanumeric code which uniquely identifies a financial instrument and provides for the uniform identification of securities at trading and settlement.

Investment trusts

These are companies quoted on the London Stock Exchange whose main activity is to invest in the shares of other companies.

ISA Transfer

A transaction resulting from a decision, made with or without advice from a firm, by a customer who is an individual, to transfer the investments (or their value) held in his or her existing ISA in favour of another ISA which may or may not be managed by the same ISA manager.

ISA transfer form

This form can be used to request the transfer of ISA protected investments held elsewhere into an ISA.




Last traded price

The price at which the most recent trade in a security was executed. Please note that the last traded price can be either a purchase or a sale.

Level 2

Level 2 is a professional streaming market data service, most commonly used by stock brokers and city traders. Level 2 allows the user to see the price and size of the orders beneath the best bid and offer; for quoted securities users are able to view the individual market counterparties current bid and offer. Many level 2 services include additional features such as streaming trade data, news feeds and advanced charting tools.

Limit order

An order to buy or sell a financial instrument at its specified price limit or better and for a specified size.


The ease with which a security can be traded on the market. A heavily traded security is considered to be more liquid than one which is traded less frequently.

Listed company

A company that has any class of its securities listed.


A long position in the stock market means that an investor has purchased an underlying instrument with the expectation that its price will rise.


Mandatory Quote Period

The period during which market makers on the LSE’s quote driven services are obliged to make a firm two-way quote for the securities in which they are registered. This is 0800-1630 hours Monday to Friday.

Market Counterparty

Within the financial services sector the term Market Counterparty can refer to any regulated firm such as a Stockbroker, Investment bank or Market Maker.

Market maker

A securities firm which is obliged to offer to buy and sell securities in which it is registered throughout the mandatory quote period.

Market order

An order to trade immediately at the best price available. Market orders placed when a stock exchange is closed will be dealt as soon as possible when the exchange re-opens on the next trading day.

Market price

This is the price of a security. For shares, there are two prices quoted on the exchange - bid price and offer price.

Market research tools

Our research centre focuses on key areas allowing you to find the information you need quickly and easily. Key areas include: market news, prices and indices, company data and charts, and company research.


When two companies merge their businesses. New stock is usually created and shareholders will be allocated shares in the new company at a set ratio.

Mid price

This is a price between the offer and bid price. The mid price is equal to the sum of the best bid price and the best offer price divided by two, and rounded up to be consistent with the relevant price format.

Mutual fund

This is a collective investment scheme in the US that pools investors' money to be invested in stocks, bonds and other securities.



National Association of Securities Dealers Automated Quotation (NASDAQ) - the first electronic stock market. It is an American stock exchange.

Net Asset Value (NAV)

The value of a company after all debts have been paid, expressed in pence per share.

New Issue

A company coming to the market for the first time or issuing extra shares.

Nil Paid

A new issue of shares, usually as the result of a rights issue, on which no payment has yet been made.

Nil Par Value (NPV)

The shares of a company which carry no nominal value or par value.

Nil Value

Shares newly issued by a company. These shares can usually be transferred on renounceable documents.

Nominal Value

The price of a security (stocks, shares, bonds etc) when originally issued. It remains fixed, as opposed to its market value, which fluctuates, but can be re-classified under certain corporate actions. (Also known as face value or par value).

Nominee Company

A body corporate whose business consists solely of acting as a nominee holder of investments or other property.


The New York Stock Exchange (NYSE).



OEIC stands for Open Ended Investment Companies.

Ongoing Charges

Regular charges that are made by the Fund Manager to cover the costs of running the fund (such as administration, operating the fund, investment management and independent oversight).

Open Offer

An invitation to existing securities holders to subscribe or purchase securities in proportion to their holdings, which is not made by means of a renounceable letter (or other negotiable document).


The right (but not the obligation) to buy or sell securities at a fixed price within a specified period.


An offer to buy or sell a tradable instrument with a variety of conditions attached. See limit, at best, fill or kill, execute and eliminate and market orders.

Order book

An automatic execution facility operated by the Exchange. Order books facilitate the trading of order book securities.

Order book security

A security that is admitted to trading on the order book.

Ordinary shares

These are the most common form of share. Holders may receive dividends in line with the company's profitability and recommendation of its directors. The holders are the owners of the company.

Over the counter (OTC) contracts

These off-exchange futures contracts are individually negotiated, tailor-made and illiquid.



(Provisional Allotment Letter). On a rights issue, existing shareholders will receive a Provisional Allotment Letter, which tells them how many shares they have the right to subscribe for and the subscription price for the rights.

They may exercise their rights and subscribe for the shares. Alternatively, they may sell the provisional allotment letter to another person who can subscribe for the shares. This is known as selling the rights nil paid.

A third alternative is to take no action by the deadline for subscription. In this case, the company will sell the shares in the market, retain the subscription price and remit any excess proceeds from the sale to the shareholder who failed to take up his rights.


The nominal value of a security.

Pari passu

Ranking equally. For example, in a new issue of shares which carry equal rights with existing shares they are said to rank pari passu.

Partial execution

When only a part of an order is executed.

Pay Date

The day on which a dividend is paid

Pending order

This indicates that an order has been placed.

PEP (Personal Equity Plan)

Product (replaced by ISAs in 1997).

Percentage (%) change

The percentage change in the price of a security, i.e. the percentage of change between the last trade and the previous day's closing price.

Personal trading level (PTL)

Your PTL is allocated to you by us and lets you trade up to a certain amount immediately without needing the cash in your account beforehand. This gives you the time to transfer money into your account and allow it to clear for when payment is due.


Phishing is the act of encouraging consumers to share their user names, passwords or personal financial information for the purpose of using it to commit fraud. This is usually done by assuming the identity of a legitimate organisation, or web site, using forged email and/or web pages.

PIBS (Permanent Interest Bearing Shares)

PIBS are irredeemable shares issued by Building Societies, which are traded on the London Stock Exchange and carry a fixed interest coupon which has a higher interest rate than ordinary Building Society 'share' accounts. However, PIBS provide less security. In particular PIBS rank behind share accounts on a winding-up or dissolution of the Society; they are not protected investments for the purposes of the Building Societies Investor Protection Fund. Interest is also only payable after interest has been paid on ordinary accounts and the payment due would still be subject to further restrictions.

Pink sheets

These are the leading provider of pricing and financial information for the over-the-counter (OTC) securities markets in the U.S. They provide market maker quotations, historical prices and corporate information about OTC issues and issuers.


You can access your Portfolio page of our site by logging into your account and going to Accounts / Portfolio. It shows all stock purchased within your account. It also shows 15 minute delayed prices and the gain/loss on a stock, calculated using the book cost for the stock.

Power of Attorney

A legal document giving the named person power over an aspect of the signatories finances or complete power over the signatories financial affairs.   Stock Power of Attorney is the US/Canadian equivalent of the UK Crest Transfer form. These forms are sent out to clients who send in share certificates for US or Canadian holdings for deposit into their account.

Preference shares

These are normally fixed-income shares whose holders have the right to receive dividends before ordinary shareholders but after debenture and loan stock holders have received their interest.


When dealing on an extended settlement period of longer than T+2 the Retail Service Providers are not obliged to offer the displayed price and may add a funding charge through a higher offer price, this additional funding charge is known as a premium.


A person empowered by a shareholder to vote on his behalf at company meetings.

Proxy Voting

We use a company called Broadridge to offer clients an online service to vote and request attendance to AGMs. The service is only available for UK registered stocks.

PTM Levy

The PTM Levy is a flat rate charge of £1.00 collected on all trades over £10,000 to finance the Panel on Takeovers and Mergers (POTAM).

Public Limited Company (plc)

A company whose shares may be purchased by the public and traded freely on the open market and whose share capital is not less than a statutory minimum.

Public offer

An offer of securities to the public and described in the POS Regulations.

Publish limit order

This means that your limit order will be made publicly visible to other market participants to facilitate earlier execution.



An offer to buy or sell a quote driven security. Quotes are displayed by market makers that are registered in that security.


Record date

The date set by the company in question, on which an individual must own shares in order to be eligible to receive a declared dividend.

Redemption Date

The date on which a security (usually a fixed interest stock) is due to be repaid by the issuer at its full face value. The year is included in the title of the security; the actual redemption date being that on which the last interest is due to be paid.


An organisation responsible for maintaining a company's share register.

Regular Investment Account (RIA)

Our Regular Investment Account is an online monthly investment service, which lets you make small monthly payments to an ISA, Trading Account or TD SIPP. You can purchase stocks on a monthly basis for just £1.50 commission. You can also purchase funds, which don't incur trading commission but will have a Fund Manager charge.


This stands for Real Estate Investment Trust and they operate like an investment trust. It’s a quoted company that owns and manages income-producing property, either commercial or residential, and is designed to offer investors income and capital growth from rented property assets in a tax efficient way.


A stock that does not settle via crest. Often associated with dually listed foreign stocks that have a primary listing on a foreign market. Residual stocks are usually not liquid and it may take a period of months to deliver a purchase to a client after the settlement date.

Retail Service Provider (RSP)

An RSP is a firm that provides the price feed for the online electronic quoting system similar to a computerised market maker. We use a number of RSPs to help execute your order at the best price available.

Rights issue

An offer to existing security holders to subscribe or purchase further securities in proportion to their holdings made by means of the issue of a renounceable letter (or other negotiable document) which may be traded (as "nil paid" rights) for a period before payment for the securities is due.

Rights shares

This is when a company issues more shares at a later stage to fund further projects. These are issued to existing shareholders on a pro-rata basis and shareholders have an opportunity to subscribe to these shares at a price lower than the prevailing market price.


The transferring of funds from one investment to another, such as rolling over the proceeds from a bond which has matured into another bond.

Routing Number

US and Canadian equivalent to a BIC code. Required payee detail along with account number for cash withdrawals to US and Canada.


S&P 500

The Standard & Poors Composite Index - an index comprising shares of 500 US companies reflecting the general trend in the US stock market.

Scheme of arrangement

A non-optional event proposed by a company on its share capital.

Scrip dividend

The issue of additional shares by a company to a shareholder in lieu of a dividend payment. The shares have an equivalent cash value to the dividend. No dealing charges or stamp duty is payable on the issue of the new shares.


The Stock Exchange Automated Quotations (SEAQ) system for UK securities.


SEATS PLUS is a hybrid market model combining market maker quotes and an order book. All AIM and some Main Market listing securities are traded on SEATS PLUS.


The general name for all types of stocks and shares.

Security suspended

When a security has been suspended from trading by the Exchange.


This is the Stock Exchange Daily Official List code - a 7 digit alphanumeric reference for a listed security.

Self Administered Pension

A pension trading account that lets you manage your own investment portfolio whilst keeping your pension with your existing provider (usually a provider of SIPP/SSAS schemes).

Self Invested Personal Pension (SIPP)

A SIPP is a personal pension that gives you greater flexibility and control over your investments for retirement with a wide range of investments to choose from.


Stock Exchange Electronic Trading Service (SETS) is an order-driven trading service.


The process of transferring stock from seller to buyer and arranging the corresponding movement of money between the two parties.


Sharegift allows you to donate shares that are of little or no value to charity free of charge.


A shareholder is an individual or organisation owning stock in a company.


Shorting a stock or going short is the selling of something not yet owned. People will often go short if they think the price of the underlying instrument is likely to decrease.


This is when a corporation divides its outstanding shares into a larger number of shares.

Stamp duty

A tax levied when you purchase Shares. It is charged as a percentage of the transaction value, which is currently 0.5% in the UK and 1% in Ireland.

Statement of Holding

Proof of a client’s electronic holding, like a certificate.


Stock is ownership, or equity, in a company. Investors buy stock in the form of shares, which represent a portion of a company's assets and earnings (capital).

Stock Power of Attorney

This is the US/Canadian equivalent of the UK Crest Transfer form. The forms are sent out to clients who send in share certificates for US or Canadian holdings for deposit into their account.

Stock Transfer Form

Similar in content to a crest transfer form. Clients selling or depositing residual stock are required to complete a stock transfer form.


A tool allowing clients to create a virtual portfolio to build confidence and familiarise themselves with the processes and procedures when trading on our platform.

Stop-loss order

A stop-loss is an order which is placed at a price below the current price trading in the market. If the price hits the stop-loss limit your order will be triggered and traded at the best available price.

Suspension of trading

An order to cease trading imposed by the Exchange, including a trading halt.

Systematic risk

Systematic risk is the risk of disruption to the financial system triggered by an event such as an economic shock or institutional failures.



The term T+ is used to denote the settlement date of any given trade, where T stands for trading day and the number represents how many days after the purchase or sale the trade settles.


The acquisition of one business or company by another.

Tax Voucher

A paper advice slip issued by companies when paying dividends to its shareholders. The voucher indicates a number of items including the date, the dividend rate in pence per share, whether the dividend is interim or final, the number of shares held by the shareholder, the net dividend payable and the tax credit.

Third party

A person authorised by means of a completed form to trade on a client’s account. Authorised third parties are not permitted to fund or withdraw cash from an account; they are only permitted to deal.


The best buying and selling prices available on SETS or from a market maker on SEAQ or SEAQ International in a given security at any one time.


A trade is a deal made on the London Stock Exchange. This is sometimes referred to as a 'bargain'.

Trading Limit

The value of open positions that a client is allowed to have at any one point.

Trading platform

A trading platform is the technology infrastructure in a stock exchange that is used to support one or more trading services.



Undertakings for Collective Investment in Transferable Securities (UCITS) refers to a European Union directive that establishes the terms under which a fund domiciled in one EU member state can be marketed in all EU countries. UCITS aims to simplify investment regulations across EU borders and increase investor protection.

Unit trusts

These are open-ended funds where private investors pool their money to be invested in a portfolio of securities. Unit trusts issue units to investors in response to demand. Being open-ended, unit price is closely aligned to the net asset value (NAV) of the fund.


US Dollars


Your username allows you to log into your account online and pass telephone authentication. For accounts opened since February 2003, your username will be the same as your seven-digit account number. For accounts opened prior to February 2003, please call 0845 607 6002 and we’ll be able to assist you.



A cross-border stock exchange for European blue chips.


A measure of the amount of movement in the price of an instrument.


The daily cumulative volume for each security.

Voting rights

The entitlement of ordinary shareholders to vote in person or by proxy at annual meetings or annual general meetings.


W-8BEN form

This enables you to trade in international equities on Trading, ISA, and TD SIPP accounts. Obtaining this documentation ensures that we can give you any appropriate tax relief on income paid to you from US stocks and shares.


These are securities giving the holder a right to subscribe to a share or a bond at a given price and from a certain date.




The return earned on an investment taking into account the annual income and its present capital value. There are a number of different types of yield, and in some cases different methods of calculating each type.


Zero coupon bonds

These are corporate or municipal debt securities that trade at a deep discount from the face value, as the bond pays no interest to the bondholders during its lifetime.