Glossary
- APR
- The Annual Percentage Rate of interest on a product (e.g. a bank loan) used to borrow money. The APR is calculated from the interest rate paid and any other charges contractually related to the product.
- Net wealth
- Net wealth is the difference between the value of your assets and the value of your liabilities. By contrast gross wealth is just the value of your assets.
- 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.
- 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.
- 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.