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Share Dealing Terms

Our guide to share dealing terms will help you get to grips with the basic terminology:

Alternative Investment Market (AIM): The AIM is the 'junior' version of the London Stock Exchange and is less regulated than the full stock market. As a result, this market tends to have faster-moving, newer, dynamic companies but the lack of regulation and the type of companies mean that investing in AIM-listed companies can be a risky business.

Certificates: Traditionally certificates were issued to individuals who purchased shares, although increasingly a nominee service is offered, meaning that you don't have to hold the actual certificate.

CREST: The system that enables you to hold your shares electronically, rather than in certificate form.

EPIC: The code used as a shorthand version of identifying shares traded on the stockmarket. EPIC actually stands for Exchange Price Information Code.

Limit Price: When you buy or sell shares you can specify a maximum price that you're willing to pay (if you're buying) or selling at (if you're selling). This is called the limit price.

Nasdaq: The US-stock market made up of mainly technology companies.

Rights Issue: A rights issue allows a company to raise cash, often to allow the acquisition of another company or to allow another form of expansion.

Stamp Duty: A tax that you pay whenever you buy or sell shares, Currently set at 0.5%.