Financial jargon explained

Here you’ll find a simple explanation of some of the most commonly used investment terms. If there is any other financial jargon you want translated, please call our Customer Service Team free on 0800 597 2525 or email us at and they will be pleased to help.



Zero Dividend Preference Share

Zero Dividend Preference Shares are low risk and have a predetermined rate of capital return. The shareholders receive no dividends throughout the life of the company; consequently the Shares are generally ideal for higher rate taxpayers. Shareholders have preferential rights over the distribution of the company’s assets on winding-up. All returns to the holder will be classed as capital gains.