Interest Payable To Issue (Money)

Interest Payable The City people are a cautious lot; they like the reassurance of knowing that, if interest rates were to rise suddenly, a business can still comfortably pay its interest bill to whomever it owes money. The higher this number, the more analysts and future potential lenders will rest easy and relax (see Asset […]

Illiquid To Interest Cover (Money)

Illiquid The opposite to liquid, obviously! This is the posh way of describing investments that are not very easy to buy and sell. Or more bluntly, a pig to try to get in and out of. In a stock market sense it tends to refer to shares in smaller companies that are not very actively […]

Health Insurance To Hyperinflation (Money)

Health Insurance Insurance that covers you in case you are sick. But there are different types of sickness. Short-term acute (wonderful euphemism) setbacks to your health, like those dodgy tonsils or a dicky topic. Then there’s the bolt from the blue, hideous accident (I’m touching wood that this should never happen to any of us), […]

Gearing (US Leverage) To Guru (Money)

Gearing (US Leverage) The Americans call this leverage. Leverage and gearing both mean the same thing: borrowings. The amount of gearing depends on how much money you’ve borrowed. Just as you might have a mortgage that represents 90 per cent of the cost of your house, in the same way a company can be 90 […]

Multi-Manager Funds To Net Asset Value per Share – NAVPS (Money)

Multi-Manager Funds Also called ‘manager of managers’, these are a relatively new type of collective fund. Basically it’s when a fund manager running one fund gives chunks of the money from this fund to other external fund managers to manage. He divides the cash into several chunks, giving each chunk to a different fund manager […]

Managed Funds To MSCI World Index – Morgan Stanley Capital International (Money)

Managed Funds Also called investment funds. Hopefully by now you’re wised up to the fact that a fund contains the amalgamated money of lots of individuals. Managed funds are looked after by professionals called fund managers, who’ve been trained in the art of managing money so that it brings superior returns to the overall market […]

J Curve To Long-Term Investment (Money)

J Curve Economic gobbledygook for things getting worse before they get better, following an event like the lowering of interest rates. It’s a funny J-shaped squiggle on a chart. The reason why this economic phrase has its name is because the bottom of the letter ‘J’ dips down and then goes up! Jobbers In the […]

Net Book Value To Permanent Income-Bearing Shares – PIBS(Money)

Net Book Value Accounting-speak. This is like book value, only the number is adjusted for depreciation (see Book Value, Depreciation). Net Current Assets Accounting-speak again. Anything in a business that can be easily and quickly converted into cash, usually within one year, to repay debts constitutes a current asset. Hey, another easy-peasy one: Current Assets […]

Profit and Loss Account To Reverse Takeover (Money)

Profit and Loss Account This scintillating and vitally important bit of information tells you how much money a company is making. City analysts have raptures or cold sweats poring over every little scrap of information that appears in this section of a company’s accounts. It tells you how much the company sold (sales, turnover, revenue […]

Share Options To Syndication (Money)

Share Options The owners of these are rubbing their hands with glee (well usually anyway!). Directors of companies are ever increasingly being given the chance to participate in the wealth creation of the companies they work for. The lucky devils are offered shares in the future at today’s prices, and they are often on to […]