Glossary

Bonds

Financial products used by companies and other institutions (including the government) to raise funds. Bonds usually pay interest to investors and have a fixed term (e.g. 10 years).

Enduring powers of attorney

Enduring Power of Attorney (EPA). A legal document where someone is given the power to act and make decisions on your behalf if you are unable to do so yourself. They differ from a Lasting Power of Attorney (LPA) which has to be registered with the Office of the Public Guardian.

Financial Conduct Authority (FCA)

The regulator of financial services firms in the UK.

Investment trusts

Companies whose business is pooling and managing the funds provided by shareholders investors) by investing in a portfolio of assets. Also known as ‘close-end’ trusts.

Recession

A reduction in economic activity usually accompanied by a growth in unemployment.

Shares

Financial products used by companies to raise funds. They give investors a fractional share of the company.

Unit trusts

Financial products where investors’ money is pooled into a fund comprising many investments. Unit trusts are managed by a fund manager.