Glossary

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Glossary
Offer price

Offer price

The offer price is the price at which someone else is prepared to sell shares to you. The offer price is only good for the number of shares they are prepared to sell

Tender offer

Sometimes an investor or a company looking to buy back its own shares wants to buy a larger block of shares in one go than the market can normally accommodate. A tender offer involves setting a fixed price at which you are prepared to acquire up to a fixed number of shares. Shareholders are given […]

Spread or bid / offer spread

The bid / offer spread is the gap between the highest bid price and the lowest offer price The word “spread” is also often used in fixed income. For example, a credit spread is the difference in yield between two bonds of similar maturity but different credit quality.

Euribor

Euribor is the abbreviation for Euro Interbank Offered Rate. The Euribor rates are based on the average interest rates at which a large panel of European banks borrow funds from one another. There are different maturities, ranging from one week to one year. The Euribor rates are considered to be the most important reference rates in the […]

reference benchmark

reference benchmark – When a fund does not have a benchmark, investment companies and investment managers offer reference or a comparitor benchmark. This helps investors / shareholders appreciate how the NAV and share prices have done and helps put that performance into context. Funds that do not have a benchmark index are often absolute return funds, a total return funds or pure unfettered stock picking funds.

comparitor – as a substitute benchmark

comparitor – When a fund does not have a benchmark, investment companies and investment managers offer a comparitor or reference benchmark. This helps investors / shareholders appreciate how the NAV and share prices have done and helps put that performance into context. Funds that do not have a benchmark index are often absolute return funds, […]