A financial contract to buy or sell something on a specified future date for a pre-agreed price. futures markets exist for currencies, government bonds and commodities such as coffee, cocoa, copper and tin.
Management of money invested, typically, in stocks and shares, fixed interest, property and cash on behalf of individual and institutional customers. Also known as asset management or investment management.
Total benefit amount available on maturity or death.
A pool of financial assets into which premiums are invested to produce an investment return. Examples include property funds, managed funds and with-profit funds. Strictly speaking, these are "investment funds" rather than just "funds". Fund management is the act of actively looking after such investments on behalf of individual and institutional customers.
When all or most of the charges and commissions on an insurance policy or loan become payable when the contract is first taken out.
A free look period gives the client an option to review the terms and conditions of the policy within 15 days from the date of receipt of the policy document. Where he disagrees with the terms and conditions stated in the policy, he has the option to return the policy, stating the reasons for objection. In such a case the Policy would then be cancelled and the premium paid by the client would be refunded to him, after deducting: proportionate risk premium for the period on cover, expenses incurred by the Insurance Company on medical examination of the client and stamp duty charges.
Abbreviation of Foreign Exchange
When a company's shares are sold to investors and quoted on the stock market for the first time. Sometimes known as an initial public offering (IPO).
A guaranteed rate of interest paid over the term of an investment or loan. A fixed interest security is an investment such as a government bond that provides a set level of income and usually has a redemption value, paid at maturity.
Means by which a government can influence the national economy through changes in tax and public spending.