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Distribution yield

The previous financial year’s annual dividends from a Venture Capital Trust as a percentage of the current share price.

Discount

The amount, expressed as a percentage, by which the share price is less than the net asset value per share.

Dealing spread

The difference between the prices at which you can buy and sell shares and securities. It’s also known as the ‘spread’ or ‘bid-offer spread’.

Cum dividend

If you buy shares when you’re entitled to the most recently declared dividend, this is known as the shares being ‘cum dividend’.

Convertibles

Shares or securities which can be converted into ordinary shares at some time in the future.

Collective investment fund

An investment vehicle where a group of investors pool their money and invest in a portfolio of assets to spread risk.

Closed-ended

A closed-ended investment company has a fixed number of shares in issue at any one time. These are traded backwards and forwards on the stock market, which has no impact on the underlying portfolio.

Capital structure

The different types and amounts of shares an investment company has. This is particularly important when considering split capital investment companies.

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