Topic 2 KEY DEFINITIONS

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S W U F T Q Y E G K M Q L O I Q F L A I T
B A F R O P A O P N S R C G H B L E B M F
C N N E K M L V B K X S J A A F L R I F F
D N X G N R T L G S K P N Q H X C U Q T E
P U X I K X L O U M W U V C T M B X X B M
N A X N O H W R I F W O Q D U N O C P L W
L L C A E Y L J L Q I K A F K H X Y R P C
S E B K G O V E R N M E N T B O N D E K H
F X C O R P O R A T I O N T A X L X D T A
P E R S O N A L P E N S I O N P L A N G N
Y M F E I N V E S T M E N T T R U S T J L
Y P C A P I T A L G A I N S T A X I T J S
M T O X E N D O W M E N T P O L I C Y T G
G A H Y I R N M L E D H T N E Y X K R Y F
B M M Q V F Y I U A T O A F T F N M U C O
M O N E Y P U R C H A S E S C H E M E X U
B U E S F R I E N D L Y S O C I E T Y F Q
X N S T Y G V R P Y H J S Y I P J C E E G
X T Y D I V E R S I F I C A T I O N B Y A
V E A A A O R V D T T L L W R I X L M R E
Y G W R X Y F I O B F R A I S R M G T Y E

Clues

  • A bond issued by a national government – it is a way for the government to borrow money. Gilts (see above) are bonds issued by the UK government. (10, 4)
  • A mutual organisation that offers its members a wide range of financial products. (8, 7)
  • A tax levied on the taxable profits of limited companies and some other organisations. (11, 3)
  • A tax payable on the gain (profit) made when you sell or give away an asset, for example property or shares. Each person is allowed to make a certain level of profit before being taxed on it (7, 5, 3)
  • A type of collective investment, which operates as a public limited company. Investors buy shares in the investment trust, and the trust then uses the money from the share issue to trade in the stocks and shares of other companies. (10, 5)
  • A type of pension where the employee pays into the plan over their working life. The scheme is invested and provides the employee with the resulting lump sum on retirement. The amount they receive depends on how the scheme has performed. Also known a (5, 8, 6)
  • An insurance product that pays out a lump sum after a specified term or if the insured person dies before the end of the term. Endowment policies are often used as a way of saving over the long term. (9, 6)
  • Long-term money-purchase products provided by banks, insurance companies and other providers to help customers to build up a pot of money they can use to buy an income when they retire. There is tax relief on the payments made into the plan. (8, 7, 4)
  • Spreading investments across a range of different products, funds or types of asset so as to reduce the potential impact of any doing particularly badly. (15)
  • The annual tax-free allowance for capital gains tax. (6, 6, 6)

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