A FEW EXPLANATIONS -- NOT RIGOROUS DEFINITIONS
AIM
The Alternative Investment Market is the London Stock Exchange’s
international market for smaller growing companies. Many early-stage
companies join AIM as they seek growth capital.
EPIC
Every traded share has a unique Exchange Price Input Computer (EPIC)
code.
FTSE 100 Index
This index consists of the 100 largest companies by market capitalisation
on the London Stock Exchange. They account for just over 80% of the
UK market.
FTSE 250 Index
This index consists of the next 250 companies which are below the FTSE
100 in size. They account for around 15% of the UK market.
FTSE SmallCap Index
This consists of companies outside the FTSE 100 & FTSE indices and
represents some 2% of the UK market.
P/E RATIO
Price/Earnings ratio. Obtained by dividing the share price by the annual
earnings of that share. The higher the P/E, the more highly the market
rates its prospects.
YIELD
The percentage return on an investment based on its annual income and
present capital value.
© 2012 Crosier Investment Club
