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/Glossary

Financial Markets Glossary

Essential terminology and definitions for understanding financial markets, trading, and corporate structure.

All TermsMarket DataCorporate StructureTradingRegulationFinancial Instruments
TermFull TermDescription
AIMAlternative Investment MarketLSE's market for smaller, growing companies with lighter regulatory requirements than the Main Market
AskAsk Price (Offer Price)The lowest price a seller is willing to accept for a security
AuctionOpening/Closing AuctionPrice discovery mechanism used at market open and close to establish fair opening and closing prices
BidBid PriceThe highest price a buyer is willing to pay for a security
Closed-Ended FundClosed-Ended FundInvestment fund with fixed capital that trades on exchanges, with shares priced by supply and demand
DTRDisclosure Guidance and Transparency RulesFCA rulebook setting disclosure and transparency requirements for UK-listed issuers
Dual ListingDual ListingWhen a company's shares are listed and traded on two or more stock exchanges simultaneously
ETFExchange Traded FundInvestment fund that tracks an index or basket of assets and trades on exchanges like a stock
FCAFinancial Conduct AuthorityUK financial regulator responsible for conduct regulation of financial services firms and markets
Free FloatFree FloatProportion of a company's shares available for trading by the public, excluding strategic holdings
GDRGlobal Depositary ReceiptNegotiable certificate representing shares in a foreign company, tradable on international exchanges
InstrumentFinancial InstrumentA tradable financial asset or contract representing ownership, debt, or rights
Investment TrustInvestment TrustClosed-end fund structure listed on stock exchanges, commonly used in the UK market
ISINInternational Securities Identification NumberISO 6166 standard 12-character alphanumeric code uniquely identifying securities globally
Issuer—The legal entity that creates and offers securities to investors
LEILegal Entity IdentifierISO 17442 standard 20-character alphanumeric code uniquely identifying legal entities in financial transactions
Main MarketLondon Stock Exchange Main MarketLSE's regulated market for established companies, with Premium and Standard listing segments
MARMarket Abuse RegulationEU regulation (596/2014) prohibiting insider dealing, unlawful disclosure, and market manipulation
Market CapitalisationMarket CapitalisationTotal market value of a company's outstanding shares, calculated as share price multiplied by total shares in issue
Market MakerMarket MakerFirm or individual that continuously provides buy and sell quotes for securities, facilitating liquidity
Market SectorMarket Sector CodeCode identifying the industry sector or classification of a listed security on an exchange
Market SegmentMarket Segment CodeCode identifying the specific trading segment or market tier where a security is listed
MICMarket Identifier CodeISO 10383 standard code uniquely identifying securities markets and exchanges
Open-Ended FundOpen-Ended FundInvestment fund that can create or redeem shares on demand, with shares priced at net asset value
Order BookCentral Limit Order BookElectronic record of all outstanding buy and sell orders for a security, organised by price level
Ordinary SharesOrdinary SharesCommon equity shares with voting rights and participation in company profits and growth
PIPPrimary Information ProviderFCA-approved service for disseminating regulated information from listed companies
PlacingPlacingMethod of issuing shares directly to selected institutional or sophisticated investors without a public offer
ProspectusProspectusFormal disclosure document required when offering securities to the public or seeking admission to trading
RNSRegulatory News ServiceFCA-approved Primary Information Provider operated by the London Stock Exchange
RNS Headline CodesRegulatory News Service Headline CodesA consolidated reference of RNS headline codes for FCA, AIM, and Takeover Panel disclosures.
SEDOLStock Exchange Daily Official ListSeven-character alphanumeric code identifying securities traded on the London Stock Exchange
SETSStock Exchange Electronic Trading ServiceLSE's electronic order book for the most liquid UK equities, including FTSE 100, FTSE 250, and other major stocks
SETSqxStock Exchange Electronic Trading Service - quotes and crossesLSE's hybrid trading platform combining periodic auctions with market maker quotes for less liquid stocks
SpreadBid-Ask SpreadThe difference between the highest bid price and the lowest ask price for a security
TIDMTradable Instrument Display MnemonicA unique code used to identify securities on the London Stock Exchange
VWAPVolume Weighted Average PriceAverage price of a security weighted by volume traded at each price level during a specified period