Jargon Buster

Are you puzzled by investment language?

Our jargon buster gives clear and concise definitions and explanations of investment terminology.

To view the definitions please select the relevant letter below. Or alternatively search to find the definition and explanation you are looking for.

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Warrant

A certificate, attached to a security, which gives the holder the right (but not the obligation) to purchase either a number of shares of the borrower"s common stock or specific bonds at a stipulated price. Warrants are valid for a specified period of time which may lapse either before or, in the case of warrants to purchase common stock, on or after the maturity of the debt security. Warrants are usually detachable and may be traded independently of the debt security. Effectively, warrants are long-term call options

Weighted average return

A rate of return that is weighted to take into account the relative sizes of the various assets or funds which make up the sample

Weighting

Proportion of an index or portfolio made up of an individual or group of items, usually expressed as a percentage e.g. the percentage of a portfolio invested in a region or in any one stock. See also underweight and overweight.

Withholding tax

A tax deducted from foreign investment income. The tax can often be claimed back, either at source or via a reclaim process

Jargon Buster is intended to assist in the understanding of some of the many technical terms that frequently appear in the pensions world. The definitions are intended as a guide only.

Jargon Buster is provided by Blackrock for visitors to www.napf.co.uk