Capita Share Dealing Services
Stock Market terms
What is a share?
A share confers ownership of a portion of the company, entitling the owner to a share in the profits.
What is a settlement period?
A settlement period is the completion of a transaction. This is the time between the transaction and settlement when monies and stock are due either to or from the market. Standard stock market settlement is currently three working days or T+3. Our service operates on a T+3 basis unless you are dealing in non-Capita Administered Company shares in which case settlement will take up to ten working days, or T+10.
What is CREST?
CREST is the electronic settlement system used by Stock Market participants for UK and Irish shares. See www.crestco.co.uk for more information.
What is an RSP?
RSP stands for Retail Service Provider. They are 'market making' institutions, which means they quote prices at which they will buy and sell a given quantity of shares in an individual company.
What is the Bid Price?
The price per share you will get when you sell your shares .
What is the Offer Price?
The price per share you would pay if you want to buy shares.
What is a corporate action?
A corporate action refers to any alteration to a company's share capital or a distribution of benefits. A corporate action might come about as a result of a takeover or merger, capital reorganisation, dividend or rights issue.
What is a dividend?
A dividend is the cash sum paid periodically to shareholders as a distribution of a company's profits.
What is PTM Levy?
The PTM Levy is a flat rate charge of £1.00 collected on all UK trades over £10,000 to finance the Panel on Takeovers and Mergers (POTAM).
What is ITP Levy?
The Irish Takeover Panel Levy (ITP Levy) is a flat-rate levy of €1.25 collected on all trades over €12,500.
What is a contract note?
A contract note is a document confirming details of your transaction; this is sent to you each time you have bought or sold shares that confirms the details of your transaction including any commission charges. You should keep them for capital gains tax purposes.
What is the P/E ratio?
The Price/Earnings ratio (P/E) is derived by dividing the current share price by its earnings per share (itself calculated by dividing the historic earnings figure by the number of shares in issue). The P/E figure shows how many years of earnings it would take to equal the current share price.
What is a CDI?
A CDI is a CREST Depository Interest. CREST holds all international stocks in a pool in a local depository such as Clearstream for German stocks and DTC for US stocks. CREST then issues a CDI to each holder of the security which can then be transferred in CREST just like a UK share.
Who is the FSA?
The Financial Services Authority (FSA) is the single statutory regulator responsible for regulating investment business, deposit taking and insurance in the UK. Capita IRG Trustees Ltd is authorised and regulated by the FSA. See www.fsa.gov.uk/register for more information.
