- Capital Gains Tax (CGT)
A tax on profit made from the disposal of assets over and above CGT exemption in any one tax year.
- Capitalisation issue
See Bonus Issue
- Capital risk
The risk an investor faces that he or she may lose all or part of the principal amount invested.
- Certificated trade
A certificated trade means that shares purchased or sold are represented in the form of paper certificates in the name of the shareholder rather than in
electronic format in the nominee name of a broker. A share certificate is registered and issued to the shareholder directly from the company's registrar. TD
does not offer a service to buy paper certificates.
- Change on the day
The difference between the previous days’s closing price and the current price.
- Closing price
The official closing price as published by the stock exchange.
The fee that a broker may charge clients for dealing on their behalf. For more information on our rates and charges, visit http://www.tddirectinvesting.co.uk/choose-an-account/rates-and-charges/
Any item that can be bought and sold. These are also commonly referred to as exchange-traded items, including gold, silver, crude oil, coffee, tin etc.
The value of a transaction calculated by the number of shares traded multiplied by the agreed price per share. Charges such as commission and stamp duty are
deducted or added accordingly to give the total cost or amount payable.
- Consolidated Tax Certificate (CTC)
A CTC details all dividend payments received within a given tax year, which runs from April 6th through to the next April 5th.
- Consolidated Tax Voucher (CTV)
Please see Consolidated Tax Certificate.
A corporate action event in which the number of shares in issue are reduced by a set factor. E.g. A 2:1 Consolidation would have the effect of halving the
number of shares in circulation, doubling the nominal value and doubling the value of shares in the market.
- Contract note
Contract notes are supplied for each trade (stock and currency) and contain all the details of your transaction. These are stored within your online account
for easy access and are published no later than the working day following the execution of the order.
- Corporate actions
A corporate action is an event initiated by a company that affects the shares they issue. This includes a wide range of corporate actions, such as takeovers,
rights issues, demergers, scrip dividends and conversions.
See Market Counterparty.
The regular interest payment received by the bondholder over the lifetime of the bond. The coupon rate is expressed as a percentage of the bond’s face
- Covered warrant
Covered Warrants are a type of financial derivative issued by Global Investment Banks.
They grant their holder the right, but not the obligation to buy (Calls) or sell (Puts) a certain underlying asset, at a pre-determined price, on or
before a pre-determined date.
Covered Warrants give investors the same exposure to movements in a security, index or currency with much less capital risk. Just like shares, warrants
can be bought or sold at any time. Unlike shares, however they have a limited life span - between 3 months and 3 years at issue, after which the cash value
(if positive) of the warrant is automatically paid out to the holder. Also, unlike shares, warrants are exempt from stamp duty.
The computer-based system which enables securities to be held and transferred in uncertificated form and which is operated by CRESTCo Limited.
- CREST transfer form
This is an official form to be used for transferring certificated holdings to a CREST member - such as a broker - to then be held electronically. Crest
transfer forms can also be used to facilitate the settlement of certificated sales.
- Cum Dividend
Cum is Latin for 'with'. Used to indicate that the buyer of a security is entitled to the next dividend payment. So: 'Cum Dividend'.
- Currency risk
Where an investment is made overseas by a sterling-based investor there is a risk that sterling may appreciate against the overseas currency. For example, if
sterling is strong against the US dollar any capital growth can be eliminated from investment in US stocks and the value of dollar dividends in sterling
terms is eroded.
Currency can also affect an investment in individual securities. If you invest in a company that is dependent on exporting its product and the currency
where the goods are manufactured appreciates it will affect the profitability of the company. Similarly depreciation of a local currency will increase the
cost of imports.
- (CFD) Contracts for Difference
A financial instrument whereby two parties agree to exchange the difference in value of an asset between the time at which the contract is opened and the
time at which it is closed. A CFD is a derivative product.