Par Value
The par value of a loan stock is its face value (also known as its nominal value).
Portfolio
A group of investments. Investments can be made up of various asset classes (stocks, bonds, real estate, commodities) or the same asset class (exposure to stocks across companies and industries).
Portfolio yield
The portfolio yield, for AIC statistics purposes, represents the expected revenue, over the next twelve months from the appropriate month-end, as a percentage of the total assets at the appropriate month end. The revenue includes all expected income as calculated over the next twelve months from investments, cash deposits and other current assets with no deductions for expenses, interest, costs and tax.
Pound-cost averaging
An investment strategy by which the investor invests fixed sums over time, without specific regard to the share price at the time of purchase. The idea is that, by setting aside a fixed amount, rather than focusing on share price, you end up buying more shares when the price is low and fewer when the price is high. It can be a useful way to invest in the stock market if you are concerned about short-term volatility, as issues of timing are not as critical.
Premium
If the share price of an investment company is higher then the net asset value (NAV) per share, the company is said to be trading at a premium. The premium is shown as a percentage of the NAV. The opposite of a premium is a discount. Please see discount.
Discounts/premiums published on the company profile pages and search processes tables are calculated based on estimated data by Morningstar. For further information please see Net asset value.
Prior charges
In simple terms, a prior charge should be seen as an amount which must be paid before your claim on the income or assets of the trust. This may include debt and/or the existence of prior ranking classes of shares.
Prospectus
A document required by law to be published on the occasion of an issue of shares or fixed interest securities to the public. A prospectus gives details of the company and the issue, as well as highlighting important risk factors.
Public offer
It is a method of flotation in which a company issues shares to the public at large, including private and institutional investors.
