|
|
Capital investment |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Capital investmentSee: Capital expenditure.Capital investment Similar MatchesNormal investment practiceNormal investment practiceThe investment history of a customer, which is used as a benchmark to test the bona fide public offerings requirement of the allocation of a hot issue. Ethical investmentEthical investmentThe policy of selecting stocks for your portfolio partly on the grounds of the ethical or environmental code pursued by the companies in question.If you ask ten people what they think is ethical you will get ten different answers. Ethical views, by their very nature, are subjective.The major exclusions tend to be arms, alcohol, tobacco, gambling, animal testing, environmental damage and the payment of exploitative wages in developing countries. But the list could extend almost indefinitely and a complete screening by the Ethical Investment Research Service (EIRIS) would eliminate 60% of the FTSE 100 index.You can screen out negative factors or adopt a positive screening process and select companies with a clear environmental policy, for example.An ethical fund or portfolio of shares requires an appropriate performance benchmark. It will not reflect the market movements as a whole as it will hold a higher than average proportion of smaller companies which are much more volatile than blue chips.EIRIS maintains a database which you can use to filter an existing portfolio or to build one from scratch, using your own selection of a wide range of criteria. EIRIS: 020 7840 5700. e-mail: ethics@eiris.org website http://www.eiris.orgIn February 2000 FTSE International launched a set of stock indices called FTSE4Good. This is a tradeable and benchmark index which requires member companies to meet certain ethical standards for inclusion. Alternative Investment MarketAlternative Investment MarketA market for small, young and growing companies operated by the London Stock Exchange as a regulated market of a Recognised Investment Exchange and set up in June 1995. It replaced the Unlisted Securities Market (USM). The market provides an opportunity for companies to raise capital for expansion, a trading facility and a way of establishing a market value for their shares.There are about 400 companies listed on AIM. The market cap of the index varies quite widely. AIM companies tend to trade on wider spreads than companies on the main market, and liquidity can be a problem.One of the advantages of investing in AIM companies is that for tax purposes they are treated as 'unquoted investments' (even though they are quoted). The significance of this is that for every year that you hold AIM shares, you get 5% 'taper relief' on any gains you subsequently make. So if you are a higher rate taxpayer who would normally pay 40% CGT, and you hold shares for one year then sell them, you only pay 35% CGT. If you hold shares for four years or more, the tax rate falls to 10%. Note that this only applies to shares bought after 6th April 2000. Registered investment companyRegistered investment companyAn investment firm which is registered with the SEC and complies with certain stated legal requirements. Statutory investmentStatutory investmentAn investment that a trustee is authorized to make under state law. Further SuggestionsForeign portfolio investmentInvestment company Temporary investment investment Community Reinvestment Act (CRA) Investment software return on investment Investment climate real estate investment trust Unit investment trust Diversified investment company investment company Expected return on investment Investment Company with Variable Capital Investment bank Net investment income per share Reinvestment risk Investment Management Regulatory Organisation Foreign investment argument for protection Tradepoint Investment Exchange investment trust Return on investment (ROI) Income investment company Investment Valuation Model (IVM) Securities and Investments Board |
|
|
|