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NORMAL MARKET SIZE

This is the minimum number of securities for which a market maker is obliged to quote a price at which they are willing to trade according to London Stock Exchange rules. Any deal in a volume above normal market size is subject to price negotiation. READ MORE

NOMINEE

Rather than record every share purchase on behalf of a client in separate designated accounts with a settlement system, a broker may operate a nominee instead. This means the holdings of many clients in a particular stock are aggregated and recorded as one. This cuts down on administration and reduces the volume of paperwork received …

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NOMINAL VALUE

This is a fixed amount of a fixed income security – usually £100 – and determines both the amount of the coupon, based on the fixed coupon rate, and the final redemption value when the security is redeemed by the issuer. It is not however the market price of the security, something that is determined …

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NIL RATE BAND

This is the total amount of a Death Estate (the assets you leave behind on death) that automatically escapes inheritance tax (IHT). Currently it is £325,000 but this can be increased to take account of property (the “property nil rate band”, which will eventually add another £175,000 once the rules take full effect). Married couples …

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NIL PAID RIGHTS

When a rights issue takes place an investor is usually offered the chance to buy new shares in a firm at a discount to the current price. So for example in a 1 for 4 rights issue where the current share price is £2 each new share might be offered for £1. This implies an …

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NEW ISSUE

This term describes the situation when a security is first released to the market and made available for trading. It usually applies to shares but can equally be applied to other asset classes such as bonds. READ MORE

NET REDEMPTION YIELD

This is the yield to maturity on a fixed income security, also known as the gross redemption yield, adjusted for income tax. Note that it is only the coupons that attract income tax and not any gain or loss that arises between purchase and redemption. READ MORE