Stock Exchange A stock exchange is a marketplace where securities, such as shares and bonds, are traded. In the UK, the London Stock Exchange (LSE) is the primary exchange, hosting FTSE-listed companies.
Share Price The share price is the current value of a single share of a company. In the UK, share prices for FTSE companies are widely tracked by investors and traders.
Sector Rotation Sector rotation involves shifting investments between different sectors based on market cycles. In the UK, this strategy is popular for navigating economic fluctuations across sectors like financials, energy, and technology.
SIPP (Self-Invested Personal Pension) A SIPP is a pension scheme that gives individuals control over how their pension funds are invested. In the UK, SIPPs are tax-efficient vehicles offering flexibility in asset selection.
Small-Cap Stocks Small-cap stocks are companies with a smaller market capitalisation, often listed on the AIM or FTSE SmallCap Index. In the UK, these stocks are known for higher growth potential and risk.
Sustainable Investing Sustainable investing focuses on investments that consider environmental, social, and governance (ESG) criteria. In the UK, ESG funds have gained popularity due to increasing awareness of ethical investing.
Secondary Market The secondary market is where securities are bought and sold after their initial issuance. In the UK, the LSE facilitates the secondary trading of equities, bonds, and ETFs.
Share Buyback A share buyback occurs when a company repurchases its own shares to reduce the number in circulation. In the UK, buybacks are used to enhance shareholder value and boost earnings per share.
Sovereign Wealth Fund A sovereign wealth fund is a state-owned investment fund that manages national wealth. In the UK, funds from other countries often invest in infrastructure and FTSE-listed companies.
Social Impact Bonds (SIBs) SIBs are investment instruments that fund projects with social benefits. In the UK, these bonds are used to finance initiatives like housing and healthcare, providing returns based on project outcomes.
Short Selling Short selling involves borrowing shares to sell them in anticipation of a price drop, aiming to buy them back later at a lower price. In the UK, this practice is regulated by the FCA to prevent market abuse.
Securities Lending Securities lending involves lending stocks or bonds to other investors, typically in exchange for collateral. In the UK, this is a common practice among institutional investors for generating additional income.
Strategic Asset Allocation (SAA) SAA is a long-term investment strategy that determines the proportion of assets in a portfolio. In the UK, SAA is widely used in pension funds and wealth management.
Sustainable Bonds Sustainable bonds fund projects that benefit the environment or society. In the UK, green and social bonds are increasingly issued by corporates and government bodies.
Spot Price The spot price is the current market price of a commodity, security, or currency for immediate delivery. In the UK, spot prices are commonly used in trading gold, oil, and forex.
Stock Splits A stock split increases the number of shares in circulation by dividing each existing share. In the UK, stock splits are used to make shares more affordable for retail investors.
Sector-Specific Funds These funds focus on a particular sector, such as technology or healthcare. In the UK, sector-specific funds allow investors to capitalise on growth trends within specific industries.
Socially Responsible Investing (SRI) SRI involves choosing investments that align with ethical values, such as reducing carbon footprints or promoting fair labour practices. In the UK, SRI funds have grown as a popular choice for retail investors.
Systematic Risk Systematic risk refers to market-wide risks that cannot be diversified away, such as economic recessions. In the UK, systematic risk impacts all investments, including gilts, equities, and real estate.
Sterling Bonds Sterling bonds are debt securities denominated in British pounds. In the UK, these bonds are issued by the government, corporations, and international entities to raise capital.
Savings Account A deposit account that offers interest on savings. In the UK, banks and building societies provide savings accounts with options like cash ISAs for tax-free interest.
Stock Options Stock options grant the right to buy or sell shares at a predetermined price within a set time frame. In the UK, these are common in employee incentive schemes for publicly listed companies.
Shareholder Equity Shareholder equity represents the net assets of a company after liabilities are subtracted from total assets. In the UK, it is a key figure in evaluating the financial health of FTSE-listed firms.
Spread Betting Spread betting involves speculating on the price movement of financial instruments without owning them. In the UK, profits from spread betting are tax-free but carry high risk.
Stock Market Index A stock market index measures the performance of a group of stocks. In the UK, the FTSE 100, FTSE 250, and AIM indices are widely tracked by investors and analysts.
Stamp Duty Reserve Tax (SDRT) SDRT is a tax levied on the electronic purchase of shares in the UK. It applies at a rate of 0.5% and is automatically collected during transactions.
Shareholder Activism Shareholder activism involves investors influencing a company’s behaviour by exercising their rights. In the UK, this is common in addressing issues like executive pay or environmental practices.
Sukuk Sukuk are Islamic financial certificates similar to bonds. In the UK, they are structured to comply with Sharia law and are popular among ethical and religious investors.
Settlement Date The settlement date is the agreed-upon date when the buyer must pay for securities and the seller delivers them. In the UK, settlement for most equities occurs within two business days (T+2).
Structured Products Structured products are pre-packaged investments linked to underlying assets, such as equities or bonds. In the UK, they are designed to offer tailored risk-return profiles.
Stockbroker A stockbroker is a professional or firm that facilitates the buying and selling of securities. In the UK, brokers are regulated by the FCA and provide services to retail and institutional clients.
Short-Term Gilt A short-term gilt is a UK government bond with a maturity of up to five years. These gilts are low-risk investments, often used for capital preservation.
Soft Commodities Soft commodities are agricultural products like wheat, coffee, or sugar. In the UK, these are traded on exchanges for hedging and speculative purposes.
Social Enterprise Investment Investments in organisations aiming to achieve social objectives alongside financial returns. In the UK, these include Community Interest Companies (CICs) and social impact bonds.
Stock Turnover Ratio The stock turnover ratio measures how quickly a company’s inventory is sold and replaced. In the UK, this metric is crucial for assessing operational efficiency in retail and manufacturing sectors.
Stakeholder Pension A stakeholder pension is a low-cost, flexible retirement savings plan regulated by UK government standards. It is designed to encourage saving for retirement among individuals with low to moderate incomes.
Sector Benchmarking Sector benchmarking compares the performance of a company against its industry peers. In the UK, this is widely used to evaluate competitiveness within FTSE sectors.
Social Trading Social trading allows investors to follow and copy the strategies of experienced traders. In the UK, platforms like eToro provide access to this collaborative investment approach.
Securities Market Programme (SMP) The SMP involves purchasing securities to stabilise markets. While more common in the EU, the UK has employed similar interventions through the Bank of England during crises.
Standard Deviation Standard deviation measures the volatility of an investment’s returns over time. In the UK, it is a fundamental tool for assessing the risk of portfolios or individual securities.
Small and Medium Enterprises (SMEs) SMEs are businesses with fewer than 250 employees. In the UK, SMEs are vital to the economy and attract investment through platforms like AIM or crowdfunding.
Shareholder Returns Shareholder returns include dividends, buybacks, and share price appreciation. In the UK, FTSE companies focus on maximising returns for investors, particularly in income-focused sectors like utilities.
Stock Price Volatility Volatility refers to the degree of variation in a stock’s price over time. In the UK, higher volatility is common in AIM-listed companies and speculative stocks.
Social Infrastructure Fund These funds invest in infrastructure projects with societal benefits, such as schools or hospitals. In the UK, they provide stable returns while supporting public services.
Statutory Profits Statutory profits represent a company’s net profit according to accounting standards. In the UK, these are reported in compliance with IFRS and used to assess financial performance.
Stock Option Plan A stock option plan allows employees to buy shares at a fixed price within a specific timeframe. In the UK, these plans are often part of executive compensation packages.
Solvency Ratio The solvency ratio measures a company’s ability to meet long-term obligations. In the UK, this is particularly important for insurance companies and financial institutions.
Shadow Banking Shadow banking includes financial activities conducted by non-bank entities, such as hedge funds or private lenders. In the UK, this sector operates outside traditional banking regulations.
Securities and Exchange Commission (SEC) While the SEC is a US regulator, UK companies listed on US exchanges must comply with its rules. This affects dual-listed firms like BP and Shell.
Stop-Loss Order A stop-loss order automatically sells a security when its price reaches a predetermined level. In the UK, this is a common tool for risk management in volatile markets.
Subscription Shares Subscription shares give holders the right to buy ordinary shares at a specific price within a set timeframe. In the UK, these are often issued to raise capital while rewarding existing shareholders.
Securitisation Securitisation involves pooling financial assets, such as mortgages or loans, into securities that are sold to investors. In the UK, this is commonly used in mortgage-backed securities (MBS).
Short-Term Investment Fund (STIF) A STIF is a low-risk fund investing in short-term debt securities like treasury bills. In the UK, these funds are popular for preserving capital and providing liquidity.
Shareholder Agreement A shareholder agreement outlines the rights and obligations of shareholders. In the UK, this is often used in private companies to manage relationships and decision-making.
Stock Lending Fee The fee earned by lending securities to other investors. In the UK, this practice is common among institutional investors looking to generate additional income.
Swap Contract A swap is a derivative contract where two parties exchange cash flows or liabilities. In the UK, interest rate swaps and currency swaps are widely used for hedging purposes.
Sovereign Debt Sovereign debt refers to bonds issued by a country’s government. In the UK, gilts are a prime example, offering low-risk investments backed by the government.
Sector Weighting Sector weighting determines the proportion of a portfolio invested in specific industries. In the UK, FTSE indices provide sector breakdowns to guide investors in achieving balanced diversification.
Socially Responsible Bond Bonds issued to finance projects with positive social impacts, such as affordable housing or education. In the UK, these bonds are part of the growing market for sustainable investments.
Stock Market Capitalisation Market capitalisation is the total value of a company’s outstanding shares. In the UK, this metric is used to classify companies into indices like the FTSE 100, FTSE 250, and AIM.
Share Capital Share capital represents the funds raised by issuing shares. In the UK, companies report authorised and issued share capital in their financial statements.
Systematic Investment Plan (SIP) A SIP allows investors to make regular, fixed investments into a fund or portfolio. In the UK, SIPs are commonly used for building long-term wealth in ISAs or pensions.
Short Interest Short interest measures the total number of shares sold short but not yet covered. In the UK, this metric is used to gauge bearish sentiment in stocks.
Sustainability-Linked Bond (SLB) SLBs are bonds tied to the issuer’s achievement of specific ESG targets. In the UK, these bonds align with investor demand for responsible investments.
Stock Watchlist A watchlist is a customised list of securities that an investor monitors for potential trades. In the UK, trading platforms like Hargreaves Lansdown and AJ Bell offer watchlist features.
Sector-Specific ETFs ETFs focused on particular sectors, such as technology or healthcare. In the UK, these ETFs allow investors to target high-growth industries or defensive plays during market volatility.
Sell-Side Analyst A sell-side analyst provides research and recommendations to help clients make investment decisions. In the UK, analysts from firms like Barclays or HSBC influence market sentiment with their reports.
Share Consolidation Share consolidation reduces the number of shares in circulation by combining multiple shares into one. In the UK, this is often done to improve share price perception or meet exchange requirements.
Standardised Yield A measure of the income generated by a bond or fund, expressed as a percentage. In the UK, standardised yield is a key metric for evaluating income-focused investments.
Synthetic ETF A synthetic ETF uses derivatives to replicate the performance of an index. In the UK, these ETFs are regulated to minimise counterparty risk and ensure transparency.
Stock Appreciation Rights (SARs) SARs give employees the right to receive the financial benefit of stock price increases. In the UK, SARs are often included in executive compensation packages.
Subordinated Debt Subordinated debt ranks below other debts in terms of repayment priority. In the UK, this type of debt is often issued by banks to meet regulatory capital requirements.
Statutory Reporting Statutory reporting refers to the preparation of financial statements in compliance with legal and regulatory requirements. In the UK, companies adhere to IFRS or UK GAAP for their statutory reports.
Spread Trade A spread trade involves taking opposing positions in two related securities to profit from the price difference. In the UK, this is common in bond and commodity markets.
Stochastic Oscillator A technical indicator used to measure momentum and identify overbought or oversold conditions. In the UK, traders use it for analysing FTSE stocks and forex pairs.
Shareholder Proxy A shareholder proxy allows an individual to vote on behalf of a shareholder at a company’s annual general meeting (AGM). In the UK, proxies are commonly used by institutional investors.
Stock Volatility Index (SVI) The SVI measures market expectations of future volatility in stock prices. In the UK, it provides insight into investor sentiment, particularly during times of market uncertainty.
Strategic Bond Fund A strategic bond fund invests flexibly across various types of bonds, including gilts, corporate bonds, and high-yield debt. In the UK, these funds adapt to changing interest rate environments.
Sector ETFs Sector ETFs track specific industries, such as financials or energy. In the UK, they provide exposure to FTSE sector performance while diversifying risk.
Settlement Risk Settlement risk arises when one party in a transaction fails to deliver payment or securities. In the UK, platforms like CREST mitigate this risk for equities and gilts.
Stock Turnover Stock turnover measures how frequently a stock changes hands within a trading period. In the UK, high turnover often indicates strong investor interest or speculative activity.
Sustainable Equity Fund A sustainable equity fund invests in companies with strong ESG practices. In the UK, these funds align with growing investor demand for ethical investment options.
Short-Dated Gilts Short-dated gilts are UK government bonds with maturities of up to five years. These are considered low-risk investments, often used for short-term savings or capital preservation.
Synthetic Position A synthetic position replicates the characteristics of another investment using derivatives. In the UK, this strategy is often employed in options trading to manage risk or gain leverage.
Social Housing Investment Investments in affordable housing projects aimed at addressing housing shortages. In the UK, this sector is supported by government incentives and attracts impact-focused investors.
Shareholder Rights Shareholder rights include voting on corporate decisions, receiving dividends, and accessing company financials. In the UK, these rights are protected by the Companies Act.
Stock Exchange Automated Quotation (SEAQ) SEAQ is a platform for trading less liquid securities on the London Stock Exchange. It facilitates transactions for smaller UK companies not included in major indices.
Split Capital Investment Trust These trusts issue multiple classes of shares with varying risk and return profiles. In the UK, they provide tailored investment options for different investor needs.
Securities Clearing Securities clearing ensures that trades are settled correctly by verifying and transferring securities. In the UK, this is managed by clearing houses like LCH for derivatives and CREST for equities.
Short-Term Corporate Bonds Corporate bonds with maturities of less than five years. In the UK, these bonds are used for stable income and lower interest rate risk compared to long-term debt.
Sector Rotation Strategy A strategy that shifts investments between sectors based on economic cycles. In the UK, this might involve moving between defensive sectors like utilities and cyclical sectors like industrials.
Sharpe Ratio The Sharpe ratio measures the return of an investment relative to its risk. In the UK, it is widely used to evaluate the performance of mutual funds and ETFs.
Strategic Income Fund A fund focusing on generating regular income through dividends and interest. In the UK, these funds are popular among retirees and income-focused investors.
Stock Screener A stock screener is a tool for filtering stocks based on specific criteria, such as P/E ratio or dividend yield. In the UK, platforms like Morningstar and Yahoo Finance offer screening capabilities.
Securities Yield The yield represents the income generated by a security as a percentage of its market price. In the UK, this is a critical metric for evaluating bonds and dividend-paying stocks.
Sustainable Index Fund A sustainable index fund tracks indices focusing on ESG-compliant companies. In the UK, these funds provide a cost-effective way to invest ethically.
Stock Dilution Stock dilution occurs when a company issues additional shares, reducing existing shareholders’ ownership percentage. In the UK, this can happen during rights issues or convertible debt exercises.
Spot Forex Trading Spot forex trading involves buying or selling currency pairs for immediate delivery. In the UK, GBP-based forex trades are highly popular among retail and institutional traders.
Systemic Risk Buffer (SRB) The SRB requires UK banks to hold additional capital to protect against systemic risks. It ensures financial stability during economic downturns or crises.
Strategic Growth Fund A strategic growth fund aims for long-term capital appreciation by investing in high-growth companies. In the UK, these funds target sectors like technology, healthcare, and renewable energy.
