Glossary of Terms

  • W-8BEN

    This form must be completed in order to trade in US equities. Obtaining this documentation ensures that we can give you any appropriate tax relief on income paid to you from US stocks and shares. If the form is not provided, we are required to withhold 30% of any sale proceeds.
  • Warrants

    Warrants give the owner the "right but not the obligation" to buy new shares at a fixed price on a future date. The fixed price is known as the "exercise" price, and the future date is known as the "expiry" date. They differ from covered warrants as they are issued by the company direct, rather than by a separate financial institution.
  • Weighted

    Describes an average in which some values count for more than others. Most indices use weighted averages, so that lower valued shares do not affect the index excessively.