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S

Scrip Issue
The issue of new share certificates to existing shareholders to reflect an accumulation of profits on a company's balance sheet.

Securities
The general name for stocks and shares.

SERPS (State Earnings Related Pension Scheme)
A state pension in addition to the basic state pension based on earnings. Replaced by the State Second Pension (S2P) on 6th April 2002.

Shares
A stake in a company which entitles you to vote at annual meetings and benefit from the company's profits in the form of a dividend.

Single-tie Adviser
These advisers can only sell products of a single provider and must make a full disclosure of their link to the provider. The same advisers will also be allowed to sell another company’s products to fill any gaps in the range of products offered by their employer.

Small Caps
Another name for small companies.

SOFA
SOFA has now merged with the LIA now to become the PFS (The Personal Finance Society).

SSAS (Small Self Administered Scheme)
Small Self Administered Scheme, an occupational scheme where the members are trustees and are directly responsible for administering the fund and paying out the benefits. Some funds are invested in assets other than insurance premiums.

Stakeholder pension
Low cost pension schemes introduced by the government in 2001 to encourage people to make provision for their financial future. They are aimed at those who may not have been able to afford a personal pension and were not eligible for an occupational or group scheme.

Stock market
The marketplace for the sale and purchase of shares, government bonds and other securities.

Switching
Moving an investment out of one fund and into another.

T

Term Assurance
A life assurance contract with a fixed term and a sum assured which is paid out only if the life assured dies within the term specified.

TESSA
Tax-exempt special savings accounts replaced by ISAs in 1999. You can no longer invest in a new TESSA but you can transfer your existing TESSA into an ISA.

Tied Agent
Financial advisers who have an agreement with one particular company to recommend its products. They can range from self employed individuals to banks and building societies and can give you advice on your financial circumstances but they cannot survey the whole market for you.

Total Return
The combination of capital growth and reinvested income at the end of any given period.

Transfer Value
The amount of money which is available to be transferred to another pension or investment arrangement.

U

UCITS (Undertaking for Collective Investments in Transferable Securities)
A Ucits fund is theoretically one that is authorised for sale in any of the EU member states. However, many EU countries also have their own requirements which must be fulfilled if a fund is to be offered for sale there.

Unit Linked Policy
An insurance policy in which the benefits depend on the performance of units in a fund invested in shares, bonds and property.

Unit Trust
An investment contract which invests in a variety of different stocks and shares and is divided into units which are issued to its members instead of shares.

Variable Rate Mortgage
A mortgage product where the amount of the monthly payment goes up or down in accordance with variations in the interest rate, based on the Bank of England rate.

Venture Capital Trusts (VCT's)
VCT's were devised in the 1993 budget as a way for new and unquoted companies to obtain money from investors. VCT's are essentially investment trusts. Like other investment trusts their shares are often traded in the stock market. Investors receive tax relief at 30% on the money they put in. Any dividends or capital gains will also be free of tax

VAT (Value Added Tax)
A form of indirect taxation levied on goods and services.

Volatility
The degree by which share prices in a particular market or sector go up or down.