This is a pension plan organised by an employer to provide pension benefits for its employees. May be defined benefit (final salary) or defined contribution (money purchase) pension schemes.

The price you buy shares or units for in a unit trust. The price you get when you sell shares or units in a unit trust is known as the Bid (Selling) Price. The difference between the two is often referred to as a Bid Offer Spread.

The concept of ‘offshore’ has no strict legal definition. In financial services terms, it refers to jurisdictions that offer concessionary tax regimes compared to major ‘onshore’ centres, such as the UK or US. Additional offshore characteristics may include banking confidentiality and less strict company formation rules.

Under this sort of contract, paying an amount of money gives a right to buy or sell goods at a fixed price by a particular future date. Note they are not an obligation to buy/sell.

Also known as equity shares, these are the most common form of share in the UK. They give the owner a right to share in the profits of a company (dividends) and to vote at general meetings of the company.

Where a defined benefit/final salary pension scheme has assets that exceed those required to meet its liabilities (the benefits allowed).