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GLOSSARY
Alternative Investment Market
(AIM)
The junior market of the London Stock Exchange (LSE) for smaller growing companies to
list shares. Businesses include early stage, venture capital backed and more established
companies seeking access to growth capital.
AIM VCTs
New shares of companies that are traded on the Alternative Investment Market (AIM).
Buybacks
The repurchase of outstanding shares by a company to reduce the number of shares on the
market.
Closed-Ended Funds
An investment company that issues a fixed number of shares in an initial public offering and
invests the proceeds in securities such as common stocks, bonds, etc.
Collective Investment
Consists on combining the assets of several individuals and organisations to create a larger
and well diversified portfolio.
Corporate Governance
The set of standards of good practice in relation to board leadership and effectiveness,
remuneration, accountability and relations with shareholders (FRC, 2015), by which companies
are directed and controlled.
Discount
Indicate an asset’s price is trading below their net asset value. Showing that the share price is
lower than the net asset value (NAV) price.
Enterprise Investment Scheme
(EIS)
Government supported initiative designed to help smaller higher-risk trading companies
raise finance by offering a range of tax reliefs to investors who purchase new shares in those
companies.
European State Aid
Defined as an advantage of any type conferred by public authorities through state resources
to any organisation that could potentially distort competition in the European Union.
Feed-in-Tariff
(FiT)
FITs are payments energy suppliers pay if you generate electricity of your own.
Investment trust
Public listed company designed to generate profits for its shareholders by investing in the
shares of other companies.
Limited Life VCTs
Type of VCT that looks to repay the capital back to investors after the minimum 5 year holding
period.
Management Buy-Outs
(MBOs)
Type of acquisition where a management team purchases the assets and operations of the
business they manage.
OEICS
Open Ended Investment Companies are funds where investors’ money is pooled with that of
other investors in order to be spread across a wider range of investments to spread the risk.
Premium
Indicate an asset’s price is trading above their net asset value. Showing the share price is
above the net asset value (NAV) price.
P60 Form
Form given to all employees on payroll that summarizes their total pay and deductions for the
year.
Renewable Obligation
Certificate
(ROC)
The main mechanism to support renewable electricity projects in the UK. ROCs are “green”
certificates issued to accredited operators of renewable energy stations.
SA101
The self-assessment tax return form usually used by self-employed to inform HMRC about
trading losses and business receipts which are to be taxed as income from an earlier year.
Seed EIS
(SEIS)
Aims to help small, early-stage companies raise finance by offering tax reliefs to individual
investors who purchase new shares in those companies. It complements the EIS and focuses
on very early stage companies, offering tax relief at a higher rate than EIS.
Specialist VCTs
Type of VCTs that invest in companies focused in specific sectors.
Venture Capital Trusts
(VCT)
Started on 6 April 1995 and is designed to encourage individuals to invest indirectly in smaller
higher-risk trading companies whose shares are not listed on a recognised stock exchange or
listed on AIM. VCTs are traded on a regulated market and tax reliefs are available to investors.