AIM
The Stock Exchange introduced a new, less regulated, market in June 1995. This is the Alternative Investment Market (AIM). It is designed primarily to enable trading in new, small and growing companies. A Press Release dated 20 February 1995 confirmed that shares and securities on AIM do not fall to be treated as quoted or listed for tax purposes.

clearing house
a company through which transactions on an exchange may be cleared

collateral
any form of security, guarantee or indemnity provided by way of security for the discharge of any liability arising from a transaction.

contingent liability investment
a derivative under the terms of which the client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of his position

debenture
the investment, specified in article 77 of the Regulated Activities Order (Instruments creating or acknowledging indebtedness), which is in summary: any of the following which are not government and public securities:
(a) debentures;
(b) debenture stock;
(c) loan stock;
(d) bonds;
(e) certificates of deposit;
(f) any other instrument creating or acknowledging indebtedness.

debt instrument
debentures, debenture stock, loan stock, bonds, certificates of deposit or any other instrument creating or acknowledging indebtedness.

derivative
a contract for differences, a future or an option.

exchange
a regulated market or designated investment exchange.

execution-only transaction
a transaction executed by a firm upon the specific instructions of a client where the firm does not give advice on investments relating to the merits of the transaction.

Financial Ombudsman Service
the scheme provided under Part XVI of the Act (The Ombudsman Scheme) under which certain disputes may be resolved quickly and with minimum formality by an independent person.

future
the investment, specified in article 84 of the Regulated Activities Order (Futures), which is in summary: rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made.

investment trust
a company listed in the United Kingdom or another EEA State which:
(a) is approved by the Commissioners for HM Revenue and Customs under section 842 of the Income and Corporation Taxes Act 1988 (or, in the case of a newly formed company, has declared its intention to conduct its affairs so as to obtain such approval); or

(b) is resident in an EEA State other than the United Kingdom and would qualify for such approval if resident and listed in the United Kingdom.

margin
cash or other property paid, transferred or deposited under the terms of a derivative; for these purposes cash or property will be treated as having been paid, transferred or deposited if it must be paid, transferred or deposited in order to comply with a requirement imposed by the market on which the contract is made or traded

nominee company
a body corporate whose business consists solely of acting as a nominee holder of investments or other property

OFEX (PLUS)
An unregulated over-the-counter market established in 1995 specialising in smaller companies, and authorised by the Financial Services Authority.There are over 200 companies listed, many of them small, young companies. Admission to PLUS is decided by a panel of "wise men" and the only requirement is that companies must publish financial reports twice a year. So the risks are high. Liquidity of PLUS companies is poor as trades are carried out on a matched bargain basis - that is, you can only sell if there is a buyer for your shares - and the bid/offer spreads can be wide.  PLUS shares are regarded as "business assets" for CGT purposes in the UK. The OFEX website is www.ofex.com.