AIC - Guide to investment companies - Glossary

Glossary




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Redemption price

The amount at which a prior charge or preference share is due to be repaid on the expiry of the loan period or on liquidation. Please npte that although the value may be predetermined, this is not a guaranteed value

Registrar

An organisation responsible for maintaining a company's share register.

Reinvestment of dividends

For the purposes of AIC total return performance statistics, it is assumed that any dividends received on an investment company share are reinvested back into the shares of the investment company.

The process of reinvesting dividends by buying additional shares in the investment company. A useful tool for shareholders who have no immediate need for this income. Many management groups now offer investment schemes where dividends can be reinvested.

See total return performance.

Rights issue

An invitation to existing shareholders to purchase additional shares in the company.

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