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Permanent Current Assets |
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Permanent Current AssetsThe minimum level of current assets that a firm needs to continue operation. Because some level is always maintained, they are called permanent current assets.Permanent Current Assets Similar MatchesPermanent normal trading relationsPermanent normal trading relationsThe granting of permanent MFN status to a country that is not a member of the WTO. It is "normal" in the sense that most countries are WTO members and therefore have MFN status (or better) automatically. Permanent AssetsPermanent AssetsFixed assets (plant and equipment) and permanent current assets. Permanent spontaneous current LiabilitiesPermanent spontaneous current LiabilitiesThe minimum level of spontaneous liabilities that is always maintained by a firm. Permanent financingPermanent financingLong-term financing using either debt or equity. Permanent interest bearing sharesPermanent interest bearing sharesPibs are shares issued by building societies which pay a fixed rate of interest rather than a dividend. For the building societies concerned, they are a way of raising money without demutualising. As an investor, the rate of interest you receive will be the rate in effect at the time you bought your shares. Even though the rate on the PIB may change, your income will always be the same - the rate at the time you bought. It is important to note that the % rate applies to the original issue price of the PIB, not to the current share price. So if the interest rate is 10% when you buy and the original issue price is 100p, the annual interest will be 10p even if the current share price is 150p. Although Pibs are 'safe' in the sense that there is a quantifiable, regular and certain income, there is a risk of capital erosion if the share price falls below what you paid. On the plus side, if you sell your Pibs and make a capital gain, there is no CGT to pay. One of the disadvantages of Pibs is that minimum investment levels can be quite high (£20,000+) and liquidity is quite low. There aren't many building societies left to issue new Pibs, and trading in existing Pibs is quite low. Further Suggestionspermanent health insurance (PHI) |
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