Why is an ISA?
An ISA (Individual Savings Account) is a tax-efficient financial account in the UK that allows individuals to save or invest money without paying income tax or capital gains tax.
What is a state pension?
A state pension is a regular payment provided by the government to eligible individuals upon reaching retirement age. It serves as a financial support system, offering a source of income to help cover basic living expenses for individuals who have contributed to the state pension scheme during their working years.
What is a private pension?
A private pension is a personal retirement savings plan established by an individual, separate from government-sponsored pension schemes. It typically involves regular contributions made during one’s working years, with the goal of providing financial support and income during retirement.
What is an index fund?
What is a bond?
A bond is a fixed-income investment where an investor loans money to a borrower, typically a government or corporation, for a defined period at a predetermined interest rate. The borrower pays periodic interest and returns the principal at maturity, providing a predictable income stream for the investor.
What is a government bond?
A government bond is a debt security issued by a government to raise capital. Investors purchase bonds, effectively lending money to the government, and in return, they receive periodic interest payments and the return of the principal amount upon maturity.
What is an income and expenditure form?
An income and expenditure form is a financial document that outlines an individual’s or organization’s sources of income and corresponding expenses over a specific period. It provides a snapshot of financial health, aiding budgeting and financial planning by detailing financial inflows and outflows.
Why is it useful to complete an income and expenditure form?
What is a mortgage?
A mortgage is a loan secured by real estate, typically used to purchase a home. The borrower repays the loan over time, including principal and interest, with the property serving as collateral. If the borrower fails to repay, the lender can seize the property through the foreclosure process.
What is the stock market?
The stock market is a financial platform where buying and selling of shares in publicly traded companies occur. Investors participate to gain ownership in companies, while prices fluctuate based on market dynamics, economic factors, and investor sentiment, providing a mechanism for capital allocation and wealth creation.
What is the S&P500?
The S&P 500 is a market-capitalisation-weighted index of 500 of the largest publicly traded companies in the U.S. It serves as a key indicator of the stock market’s performance, representing a diverse range of industries and providing insight into the overall health of the U.S. economy.
What is the FTSE 100?
The FTSE 100 is a stock market index representing the 100 largest publicly traded companies on the London Stock Exchange, measured by market capitalization. It provides a snapshot of the UK’s economic performance and is a key indicator of the country’s stock market health.
What is the NASDAQ?
The NASDAQ (National Association of Securities Dealers Automated Quotations) is an American stock exchange known for its electronic trading platform. It lists a diverse range of technology and high-growth companies, playing a key role in the global financial markets.
What is cryptocurrency?
Cryptocurrency is a decentralized digital or virtual form of currency that uses cryptography for security. It operates on a technology called blockchain, ensuring secure, transparent, and verifiable transactions. Bitcoin is the first and most well-known cryptocurrency, but thousands of others, like Ethereum and Ripple, also exist.
What is a plc?
A plc, or public limited company, is a business entity that has offered its shares to the public, traded on the stock exchange. It has limited liability, meaning shareholders are not personally responsible for company debts. The acronym “plc” indicates its public status under UK corporate law.
What is an index fund?
An index fund is a type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific financial market index, such as the S&P 500. It offers broad market exposure and typically has lower fees compared to actively managed funds.