The issue of new share certificates to existing shareholders to reflect an accumulation of profits on a company's balance sheet.

The general name for stocks and shares.

A state pension in addition to the basic state pension based on earnings. Replaced by the State Second Pension (S2P) on 6th April 2002.

A stake in a company which entitles you to vote at annual meetings and benefit from the company's profits in the form of a dividend.

These advisers can only sell products of a single provider and must make a full disclosure of their link to the provider. The same advisers will also be allowed to sell another company’s products to fill any gaps in the range of products offered by their employer.

Another name for small companies.

SOFA has now merged with the LIA now to become the PFS (The Personal Finance Society).

Small Self Administered Scheme, an occupational scheme where the members are trustees and are directly responsible for administering the fund and paying out the benefits. Some funds are invested in assets other than insurance premiums.

Low cost pension schemes introduced by the government in 2001 to encourage people to make provision for their financial future. They are aimed at those who may not have been able to afford a personal pension and were not eligible for an occupational or group scheme.

The marketplace for the sale and purchase of shares, government bonds and other securities.

Moving an investment out of one fund and into another.

A life assurance contract with a fixed term and a sum assured which is paid out only if the life assured dies within the term specified.

Tax-exempt special savings accounts replaced by ISAs in 1999. You can no longer invest in a new TESSA but you can transfer your existing TESSA into an ISA.

Financial advisers who have an agreement with one particular company to recommend its products. They can range from self employed individuals to banks and building societies and can give you advice on your financial circumstances but they cannot survey the whole market for you.

The combination of capital growth and reinvested income at the end of any given period.

The amount of money which is available to be transferred to another pension or investment arrangement.

Undertaking for Collective Investments in Transferable Securities. A Ucits fund is theoretically one that is authorised for sale in any of the EU member states. However, many EU countries also have their own requirements which must be fulfilled if a fund is to be offered for sale there.

An insurance policy in which the benefits depend on the performance of units in a fund invested in shares, bonds and property.

An investment contract which invests in a variety of different stocks and shares and is divided into units which are issued to its members instead of shares.