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Glossary

We have compiled a comprehensive A-Z glossary of share dealing and investment terms.

I

Income Payment
The payment by a company of income arising in the form of a dividend, interest or distribution.

Index-Linked Bond

An index-linked bond is a form of borrowing by the issuer seeking to raise funds from investors. The issuer promises to pay a fixed rate of interest to the bondholder adjusted for inflation over the investment term using either the Retail Price Index (RPI) or Consumer Price Index (CPI). Therefore, the amount of interest paid by the issuer may exceed the advertised coupon rate if inflation is to rise, but conversely it may be lower than the coupon if inflation falls. This rate of interest is paid until the date that the bonds mature. On this date, the issuer also promises to repay the amount borrowed.

Individual Savings Accounts (ISAs)

Tax-exempt investment accounts which replaced PEPs. The annual allowance for a Stocks and Shares ISA is £20,000 for the 2017/18 tax year.

Infrastructure
The basic physical systems of a business or nation. Transportation, communication, sewage, water and electric systems are all examples of infrastructure. These systems tend to be high-cost investments, however, they are vital to a country's economic development and prosperity. Infrastructure projects may be funded publicly, privately or through public-private partnerships.

Initial Public Offering (IPO)
A method of bringing a company to the market. The public can apply for shares directly at a fixed price. For more information see New Issues and IPOs

Interest
A calculation based on the sterling base rate as defined by the Bank of England.

Investment Management
This refers to our various discretionary services where we manage your portfolio for you and make the decisions on your behalf and also our advisory services where we provide you with advice on managing your portfolio. More details on these services are available on request.

Investment Trusts
A collective investment fund in the form of a listed company investing in shares of other companies.

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