FINANCIAL TERMS AND CONCEPTS - 01

 

FINANCIAL TERMS AND CONCEPTS - 01

      1. Accidental damage: Damage to a person’s possessions by accident, such as spilling paint on a carpet, that is covered by some home insurance policies.

2. Account: A record of spending and income, provided by a bank, post office or building society

3. Accounting date: The last date of the period covered by an organisation’s annual accounts

4. Accumulation date: The date when income is reinvested in a unit trust, instead of being paid out to investors

5. Accumulation unit: A type of unit of income that a company reinvests in a unit trust instead of paying it out immediately to investors

6. Accurate figure: An exact reading from a meter to record how much gas or electricity a person has used

7. Actuary: An expert on pension scheme assets and debts, life expectancy and risk for insurance purposes

8. Acquisition : The buying of one company by another; also known as a takeover

9. Administration fee: An amount you pay for the time it takes staff to make changes to your financial product or service

10.AVC:Additional Voluntary Contribution: extra money that people in work related pension schemes can pay to increase their pension benefits

11. Affinity card: A credit card that allows a person to support an organisation such as a charity; every time a person uses the card to buy something, the credit card company makes a small donation to the organisation

12. After tax: An amount of money that a person is left with after they have paid tax

13. Agent: A person who deals with a range of suppliers from which it can issue a recommendation to a client

14. All risks: A home insurance policy that covers a person’s possessions even if they take them outside their home

15. Allocation rate: A percentage of a person’s money that has been invested in a fund; the remainder is spent on charges

16. Annual: Every year

17. Annual cover: An insurance policy that a person must renew every year, such as health or car insurance

18. Annual management charge: A charge or fee that a person must pay each year to the manager of an insurance policy, investment or pension fund, based on the value of a person’s fund

19. Annual service: A check made once a year on a piece of equipment to make sure it is working properly

20. Annuity: A regular amount paid out to somebody from an investment that is linked to a managed fund

21. Applicant: A person who applies for something

22. APR:Annual Percentage Rate: a percentage to show the amount of interest and other fees a person pays each year to receive a loan

23. ARF:Approved Retirement Fund: an investment plan that self-employed people, directors of family firms and certain other people can buy with the proceeds of their pension plan when they retire, which they can allow to grow or can cash in from time to time to provide an income.

24. Arrangement fee: A fee that a bank or building society charges a customer for arranging a loan

25. Arrears:An overdue amount that has not been paid