Investment 投资学HND.doc

精品文档Investment 1. stakeholder pension Stakeholder pension were intended to encourage more long-term saving for retirement, particularly among those on low to moderate earnings.Individuals may take out stakeholder pension individually or though their employer.There are some minimum standards about stakeholder pension.l Management charges should less than 1.5% per annum for the first ten years.l The charge should reduce to maximum of 1% per annum after ten years.l A minimum payment of 20 Gross per month.l The facility to stop and restart contributions without penaltiesl It must be penalty free if any transfers ou2. Bond 1) Bond is a debt security. 2) If the customers buy the bonds, the issuer must pay the interest to the holders, the interest are called coupon. Usually this rate is fixed throughout the life of the bond. The coupon is paid regular, usually twice a year. 3) And in the end of bond life, the issuer needs to pay the bond face value to the holders. 3. Index link bondIndex link bond interest payment and capital repayment related to the market index. The index usually are CPI (consumer price index), a mainly element to calculate the inflation rate. So the biggest feature of this kind of bond is against inflation.4. Bond price l Dirty price: In finance, the dirty price is the price of a bond including any interest that has accrued since issue of the most recent coupon payment. Dirty price= quoted price + accrued interest (成交价+应付利息)l Clean price: the price of a bond excluding the accrued interest.5. SharesRights issues (附加股)A rights issue is an issue of rights to buy additional securities in a company made to the companys existing security holders.If an existing shareholder holds on the company shares, the shareholder has the rights that using a low price to buy the company new issuing shares.The rights can be exercised or not, moreover, they can also sell they rights to other investors. However, because of the rights issue, the share price will decrease.6. Sharesl Ordinary shareholdersIf the investors buy a company ordinary shares, they are the companys ordinary shareholders, and they will get following rights. Firstly, the shareholders can attend the companys meeting, to determine company policy and have the rights to vote. For example, they can voice their opinion when a merger or acquisition or propose, or change the firms directors.Secondly, each shareholder will receive an annual report and accounts such as the financial report every year. If the company runs well, the company usually gives shareholders dividends. But the dividends are not fixed. And they have not any restriction when they sell or transfer the shares. The can buy or sell the ordinary shares in the secondary market.Thirdly, if the company goes bankrupt, the ordinary shareholders can get a final distribution on winding up. But both of the rights to get dividends and get distribution on winding up, the preference shareholders are prior to ordinary shareholders.l Preference shareholderSome investors hold on the company preference share, they are preference shareholder of the company. In some ways their rights are similar to ordinary shareholders, but some ways are different. The preference shares offer more limited risk and return. Here are some advantages of preference. First, the company has the responsibility to pay dividends to preference shareholders. The dividends are fixed and cumulative. And preference shareholders have priority rights to get dividends. Then, when the company issue new shares, the preference shareholders have priority rights to buy the new issuing share. Thirdly, if the company goes bankrupt, the ordinary shareholders can get a final distribution on winding up, and preference shareholders are prior to ordinary shareholders. However, there are two disadvantages of preference shares. First, they have not the voting rights. Moreover, the preference shares can be issued with conversion rights, but it cannot buy or sell in the secondary market. 7. Sharesl P/E ratioThe price-to-earnings ratio, or PE ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. The ratio reflects how much the investor willing to pay for the net profits. A normal P/E ratio is between 5 and 20. P/E ratio=EPS(Earning per share)Current Share Price per sharel EPS Earnings per share are the companys total earnings or net income divided by its shares outstanding. It is the most important index which is used to evaluate the company, because it affects how much dividends the shareholders gain and the value of ordinary directly.EPS=net incomenumber of shares outstanding8. Property investment Nowadays, the property investment becomes an important part of investment, because more and more people become the home owner in UK in the last twenty years. Most people buy the property are used to live, and someone buy the property is used to be a part of portfolio.The property investment not only include residential home, but also include shops, offices, industrial, and agricultural. Advantage of property investment:l Price appreciationOver long term, the rate of property price increase usually higher than the inflation rate. It means the property have the feature to against inflation l TaxIf the property is a main residence, the capital gain tax is free. l Diversification The investors usually divided the investment risk; the property is a good way to reduce the risk. For example, an investor can use a part of money buy shares which is the high risk and high benefits investment products. And he can use the rest of money invest property which the risk is lower than stock and shares.9. Pension 1) State pension The state pension is provided by the government when the people reach their state pension age. How much of the state pension a person can receive is depends on the number of years he/she has paid National Insurance or get National Insurance credit.2) Company pension Set up by employers to provide pensions and related benefits for their employees on retirement. They are also sometimes called occupational or workplace pensions.Features:l Operated and run by employers, or agents for the employeesl They provide retirement tax efficient benefits for