Glossary

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Glossary
Mark to market

Mark to market

Mark to market is an accounting practice that involves adjusting the value of an asset to reflect its value as determined by current market conditions

Capacity market

The capacity market is a mechanism introduced by the UK Government to manage security of electricity supply in the UK and to safeguard against the possibility of blackouts. Capacity market participants are paid to ensure they are available to respond when there is a high risk that a system stress event could occur. Electricity suppliers […]

Markets in Financial Instruments Directive (MiFID)

Markets in Financial Instruments Directive (MiFID) is the framework of European Union (EU) legislation for investment intermediaries that provide services to clients around shares, bonds, units in collective investment schemes and derivatives (collectively known as ‘financial instruments’) MiFID was applied in the UK from November 2007 and was revised by MiFID II, which took effect in […]

Bull market

A bull market is one in which a general mood of optimism sees a trend of securities prices rising, over a sustained period (rather than a short term correction). The opposite condition is a bear market. Both bear and bull market spirals can become self sustaining. For example, in a bull market, rising confidence can lead to buying, which […]

Bear market

A bear market is one in which a general mood of pessimism sees a trend of securities prices falling, over a sustained period (rather than a short term correction). The opposite condition is a bull market. Both bear and bull market spirals can become self sustaining. For example, in a bear market, falling confidence leads […]

Market neutral

Funds that seek to match long and short positions exactly are called market neutral funds. Part of the transaction may involve an index or futures and options based on an index or a basket (selection) of stocks

AIM – the Alternative Investment Market

AIM is an abbreviation for Alternative Investment Market

Alternative Investment Market

The Alternative Investment Market (AIM) is the London Stock Exchange’s junior market for companies that, for whatever reason, are not suited to the main market. Companies are quoted rather than listed on AIM. Until recently companies quoted on AIM did not qualify for inclusion in ISAs but they now do.