Lingo Buster P
Lingo Buster P
Price-to-earnings ratio is how the price of each share compares to the amount earned from each share, or mathematically explained as Share Price divided by Earnings per Share.
A fund that does not need a fund manager since they are fixed investments that follow certain industries or markets and will move up and down with them (aka Tracker Fund). Fees applied to these funds are a lot less than regular funds.
An investment which involves lending money to other individuals or companies in return for interest payments. The lending takes places through an online platform which matches lenders with borrowers.
A fee charged for the pension set-up, ongoing admin and providing you with account information including annual statements (aka Annual Management Charge). The good news is that the UK government capped the fee on workplace pensions at 0.75% (fyi, this means for every £10,000 in your pension the most you’ll pay is £75 a year). If you have a pension outside of your work, the provider could charge more.
A payment made to a fund manager if the fund makes a profit. The fee is usually a percentage of the profit.
An allowance from the UK gov which allows you to earn a certain amount of interest each year without having to pay tax on it. The allowance depends on which income tax band you are in, we have a guide for that.
The pool of investors who are the first to buy newly issued stock or bonds directly from a company, government or other institution.
A company whose shares are not freely traded on a stock exchange and hence are not available to 'anyone'
A company whose shares are freely traded and 'publicly' available on a stock exchange