Money Weekly: Richard Hunter gives his answers to Investing FAQs

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Richard Hunter is the Head of UK Equities at Hargreaves Lansdown Stockbrokers. He is frequently quoted in the national press and appears regularly on national radio and TV.
Here he addresses several FAQs about stocks and shares. You can email Richard with your questions and then check back on a Wednesday to see if your question has been selected for an answer.

Please note that Richard will not be able to respond personally to these emails

Stocks and shares FAQs

I have recently found a Barclays share certificate stating that I have 78 ordinary shares of £1 each fully paid. However, on my other Barclays share certificates it states that they are 25p fully paid. Is the ordinary £1 certificate valid?

I have 1800 shares in RBS. I have seen the announcement about the rights issue. How many rights will I get and what will my options be?

Given the difficult state of the market at the moment, I have heard talk of so-called “defensive” and “cyclical” shares. What exactly is the difference?

With the advent of electronic settlement, I assume there will be less and less need for share certificates, until such time as they are no longer issued at all. Is there any sort of market for old or rare share certificates, even if the underlying company no longer exists or the certs are simply invalid?

I have just found some old certificates in ICI but cannot find their current share quote anywhere. Can you help?

How could a parent buy and sell shares on behalf of a child? Can shares be bought by the parent but with the child’s name on the certificate? What, if any, are the tax implications of doing this?

Sometime in 1999 I bought shares in British Energy. I had 3 certificates. In December 1999 we moved and I lost them. I have just found them again, I don’t know if they are valid or not. I need to advise the company of my change of address and also want to know the value - but I don’t know what the procedure is, as I don’t do share business any more. I would be grateful if you could please guide me in the right direction to cash in these shares.

Is there a way I can release my Capital Gains Tax liability from my shares without giving them up?

What is the LIBOR rate that we have heard so much about during the credit crisis?

Why have pharmaceutical stocks such as GlaxoSmithKline had such a torrid time recently?

What are PIBS and are they risky as an investment?

With another interest rate decision due shortly, what are the sort of factors which will be taken into account by the Bank of England?

What are the origins of the terms “bull” and “bear”?

I’ve recently read a lot about rising food and agricultural prices. Why might this be and is there a relatively simple way for a private investor such as myself to gain exposure to such a trend?

The problems around the US sub prime crisis have been well covered. But in terms of the US Federal Reserve and the markets crunch there, I keep hearing the term “moral hazard”. What exactly does this mean?

I know I own shares in a couple of companies I bought years ago, but have lost the certificates – and worse still the paperwork during a house move. I am not even sure of the company details (having sold some of them, hence making the job of finding out what I own more complex) – I do have the broker’s details though. Do I have any chance of finding out what I own and if so how do I go about gaining ownership of these shares again?

I have been cold called by a company offering me shares in a “no-lose” foreign investment. I am not sure where they got my name from and it is not a company with which I am familiar. What should I do?

What is the difference between the terms adjusted earnings per share and diluted earnings per share?

What are the timings of a normal trading day on the London Stock Exchange?

I was in hospital for a long period last year at the time of the Ferrovial take-over of BAA. This meant I was unable to deal with the surrender of the shares at that time. I have now been approached by 'Keysearch' who have offered to assist in getting the money for me but ask for a 15% administration fee plus VAT. Is this (a) reasonable and (b) the only method left to me for disposal of these shares?

Should I invest for income or for growth?

I have shares in a company which has just been taken over. Within the paperwork I am being offered either cash or Loan notes for my existing shares. What exactly are Loan notes?

I bought some shares in Dragon Oil in the late 1990s and am considering selling them. How do I go about selling shares? I am a complete shares novice. I don’t want to go through a broker if possible – my shares won’t be worth much so to pay a minimum fee might make the exercise pointless. Can I sell them in person?

I have been offered a Save As You Earn/savings related share option scheme by my company. What should I be looking out for?

What exactly is meant by the terms “bottom-up” and “top-down” investing?

I bought shares for my children when they were young. On the certificates my name appears first followed by A/c and the child’s name. As my children are now in their twenties, who now legally owns these shares and what are the tax implications?

I am trying to calculate a potential capital gain for my US tax return from the sale of shares in BAA following the buyout in August 2006. I am having great difficulty in finding out the share price on the date that I acquired the shares (28 August 1999). I inherited these shares, so I have no record of purchase and I have searched long and hard on the Internet. Please help point me in the right direction

I have a certificate for 1000 shares in London Securities. They are ordinary 15p shares and the cert is dated 1988. Are they of any value?

To make sure that one qualifies for the dividend of a share which one is about to purchase, are there any pitfalls to avoid, i.e. buying at certain times? What are the general guidelines on the subject please?

I have some O2 shares. What are they worth and how do I cash them in?

The market seems weak at the moment, what has the dollar got to do with this?

I have shares in British Leyland. Are they worth anything at all?

I have noticed that Tesco shares are doing well recently. What are the reasons for this?

I have a share certificate for 196 Ordinary Shares of IR25 pence each in Dragon Oil plc which I acquired in 1997. I have since remarried and they are in my old married name. Can you tell me please:

If it is worth anything, and if so how much.
How I would redeem it, especially given it is in my old married name.

Chaco Resources is an active stock on the market, but I do not see much press coverage. Where can I pick up the latest news on this stock?

What is Enterprise Value?

Can you please tell me why the Pacific Media shares which I have held for many years have increased significantly during the last two weeks?

I’m obviously missing something about the “£9 billion returned to shareholders” by Vodafone. I stand to receive about £600 shortly, while my newly reduced shares are worth about £600 less. What is the point of this expensive exercise?

I bought some shares many years ago but in my parents’ name (with my initials suffixed, I believe this was because of my age). How do I transfer them back fully into my name?

As a Vodafone shareholder, am I right in thinking I should have received a cash payment from the company?

What is behind the recent share price hike in the supermarket William Morrison?

Do you know of any free reports on the Standard Life flotation?

Could you tell me what is happening with the Whitbread share price?

As a BAA shareholder, what are the terms of the Ferrovial offer?

What is meant by the term “triple witching”?

What has happened to the Intercontinental Hotels Group share price?

A number of the publications I have read have sections devoted to 'Directors dealings'. Is the amount of space they take up justified?

I'm one of the many that will benefit from from the Standard Life windfall. Now do I take the windfall or the shares?

What has happened to the Unilever share price? It seems to have jumped from around 520p to 1170p

Certain companies are only known by their initials - EMAP, EMI, HMV,WPP - are these dealing codes or do they mean something?

What is meant by the term "net asset value"?

Could you explain what ETFs are?

I keep hearing the term "quadruple play" when TV or telecom shares are being discussed. What does this mean?

Where next for interest rates?

My wife and I have both sold some shares this year. I have made just over £8,000 in gains and my wife has made £7,700. Can we pool our Capital Gains Tax (CGT) exemptions and avoid paying any tax?

I've inherited some shares from my grandmother and want to sell them, but I don't know how much she paid for them so I don't know what the CGT liablity might be.

I have found some old share certificates. How can I check whether or not they are still valid?

Can you suggest any sites that give the latest or current analysts' target prices for shares in the FTSE or Dow? This would greatly assist me in knowing when to enter or exit a share.

Can you explain what is meant by the term 'rolling settlement'?

What is a placing?

Is this a good time to buy Government or Corporate Bonds or should I wait interest rates next peak?

The Chancellor mentioned REITs in the Budget and this seemed to have a positive effect on property shares. What are REITs?

I was previously a Marconi shareholder – could you tell me what the latest position is?

I'm trying to find a site which lists ex-dividend dates for shares. I've been unable unanble to find this information - can you help - and is there a database or tool that summarises the ex-div dates for all companies? Is there a certain time of the year where most companies would have the ex-div?

I have always wondered - what is the actual difference between "stocks" and "shares"?

What does the phrase "corporate action" mean?

Following the sale of Boots Healthcare International to Reckitt Benckiser, I have received a special dividend of £2 per share from Boots. I remain interested in this sector, have you any thoughts as to how I could keep this money invested?

I have had shares in Griffin Mining since the end of last year. The company looks sound -no debt- ready market for zinc - even gold in the offing - good Regulatory News Service reports - why the low price?

Can you tell me why Marks and Spencer's shares increased so rapidly from July 2005 to December 2005?

I hold shares in an Australian bank. What is the best way to sell them?

Last year we had some documents about a class action against Cable and Wireless in the US. We duly filled in the forms and returned them. Are we benefit from this and if so when?

What are EPIC codes and what are they for?

What is the problem with rising oil prices and why do they cast such a shadow?

Is there any hope if I have share certificates which I know have no market value because the company has gone bust?

I have an old share certificate for ordinary shares in Express Dairies – is it of any value?

My recently widowed mother has found an old share certificate for GRA Property Trust. How can she find out if these shares are worth anything?

Why does the price of a share tend to drop when it is marked "ex dividend"?

Is it true that private investors can apply for shares in the float of the state-owned company QinetiQ? If so, how would I go about it?

I read that some of the FTSE sectors have been "reclassified". What does this mean?

I have shares in Providece Resources which I would like to sell. On checking the price, I find they are listed on AIM priced at £3.35 and the Irish exchange at 0.01 Euros. Can you explain why this is, and what price I could expect if I sell?

I have heard all about “SIPP”s (Self Invested Personal Pensions) and “A day” and wondered how to find out more, especially as I may consider putting my shares into this shelter?

What is meant by the term “hedging”?

What factors cause the value of Gilts to rise and fall?

What is meant by the term “averaging down”?

As a GUS shareholder, what is the effect on my holding following the Burberry demerger?

The FTSE100 seems to have put in a good performance in 2005. Which were the best performing stocks?

What are the more likely performers according to the different phases in an economy? And what is the definition of “performing”?

In May this year my adviser recommended that I should buy some Apollo Resources International shares (an oil company) as the company planned to have a dual listing on the AIM market in September, and since the AIM market is made up of about 70% Resources companies, this would be a good investment opportunity. Apollo is currently listed on the OTC bulletin board in the United States . September has come and gone – is there any way of finding out if Apollo are going to have a dual listing?

Often, when I sell a share that looks overvalued to me, it goes a lot higher. How can I get rid of this bad habit?

My sister-in-law has recently been left some shares in West Ham United in her mother's will. The share certificate is dated 1920 and it still shows the original holder from whom her mother inherited the shares. How can she have the shares transferred into her name? Also, will the nominal value of the shares have increased since the time of issue as the company is now a PLC? How can this be verified?

I have some O2 shares, which were initially acquired through the BT privatisation some 20 years ago and then the demerger of O2. For Capital Gains Tax purposes, what is the initial value of the O2 shares?

One of the companies I have invested in has just had a rights issue. Should I take up the rights?

I'm in a dilemma. I had shares in Infonet which was taken over by BT in February/March of this year…I had no communications whatsoever from Infonet since buying their shares (as a former company member)…(and was told by BT)….that the company should be in touch with me over how to sell the shares now that the takeover was complete….I'd like to get some money for these shares….but no one seems to be able to give me this information either!

With all this talk of a cold winter coming, I guess that some firms will do well out of this and we should invest. Any suggestions as to who we should watch?

What are the origins of the expressions “bull” and “bear” when talking about markets or general optimism?

I keep hearing about EBITDA when companies are reporting. What is this and what does it stand for?

What is meant by the term “yield curve”?

What is a reverse takeover?

I am an O2 shareholder and have read with interest about the bid from Telefonica of Spain . What action should I now be taking?

What is meant by the term “technical analysis”?

Where can you buy gilts and how can you find out what is available? I thought you could buy them through the Post Office as there used to be a leaflet on this. When I tried to get hold of a leaflet I was told it was no longer available.

What evidence is there that directors’ dealings are a positive indicator of share price movements? By the time I read about directors' dealings, is it too late?

I would like to invest in stocks and shares. However, I do not know where to look or begin. My colleague used to buy and sell shares, it seemed like an easy process. After reading a lot of literature on the website I am actually quite scared. Would I be able to get help and advice to get started for free? Could you recommend any companies or websites?

Often when I trade shares I cannot see evidence of the trade on trade monitors (ADVFN) even when less than normal market size, even hours later. Why not?

What are gilts?

What are OEICs?

I have a number of shares with various companies and have had them for about ten years. I now want to sell them all. Who are the best people to do this without costing me too much?

Please can you tell me if, when quoted, a high P/E figure is better than a low one and why?

Recently Psion has issued some “B” shares to their investors and returned monies of 20p per share on the existing shares. The new B shares have been issued at 3 B shares for 3 old shares. Apparently they are also issuing “A” shares. Can the new A and B shares be sold at the current market price by the shareholder, or do they have restrictions on these?

I purchased over 4000 shares in Loftus Road in July 2000, the company have gone into and out of receivership and also changed name to QPR Holdings. Are my original shares still valid, as the company did not fold but came out of administration, and where can I find them listed?

When British Energy reorganised its value of shares, I was issued with so many ordinary shares and so many warrants. I do not understand if these warrants are the same as shares and valued as such on the market.

How safe are corporate bonds?

I have heard that dealers can sell "short" to capitalise on the price performance of a stock. What does this mean and how does it work? Can dealers manipulate a company's price by selling and buying back later when the stock has lowered? If so, is this legal?

Can you please explain the term "ROCE" (expressed as a percentage) often quoted when looking at the financial elements of a company and is it any sort of indicator as to whether a company is worth investing in?

Why aren't Investment Trust prices reported in the Managed Funds pages of the FT alongside Unit Trusts?

I cannot understand why the market sometimes rises when bad economic figures are released?

I own shares in Glaxo SmithKline, but I haven't been receiving copies of its Report and Accounts. Can you help me?

Is the AIM market more risky than the main market?

I have heard talk about 'correlation' between markets, what does this mean?

What are ADRs?

I have heard talk about 'correlation' between markets, what does this mean?

Broker recommendations: What do they mean? What does overbought mean? And what likely potential outcome on price could such recommendations make?

What are ETFs and why would anyone use them?

How would I go about joining, or forming, an Investment Club?

What exactly is meant by the term "secondary market"?

I notice from the new RHM flotation that the share price may be subject to "stabilisation". What does this mean?

How do company dividend tax credits work?

What is meant by the term "gearing"?

What are "fixed" and "intangible" assets?

What is the meaning of "market size" when dealing?

What is a rights issue?

What is meant by the terms "active" and "passive" management?

What is the point of a scrip issue?

What is market capitalisation? And when I see "billions wiped off share prices" what has happened?

I recently read in the news that National Grid shareholders are to receive "B" Shares. What are "B" shares and why are they being distributed?

What is a "closed period" and how does it tie in to trading updates?

Has Sid finally come of age? All about windfall and privatisation shares

While checking a share price recently, I noticed that the company had various types of share - how many are there?

I bought a stock which is not quoted on the main market but on AIM. What does AIM mean and what problems will I encounter when I come to sell, such as if I use an online dealing service?

Why do shares often rise despite releasing what appear to be disappointing results, or indeed a disappointing announcement?

What sort of shares should I be looking at for potential income, as well as capital growth?

I want to use EPS and P/E ratios to calculate the value of a share - where can I find these figures so I can compare them?

Which shares are best in a recession and which companies did well in the last one?

I have received by post a share certificate for 100 shares from Asia Capital Plc with no other covering correspondence. It says the document is valuable and should be kept in a safe place. I have no knowledge of the company at all. Should I destroy the certificate?

I'm a Manchester United shareholder. Why is there such hostility towards a proposed bid from Malcolm Glazer?

I am a very small investor. Can I buy shares in quantities of 50 or less? Maybe 50 shares in Tesco. And if so, how do I do it?

I have some Alliance & Leicester bank shares I wish to sell in a few weeks time but do not wish to miss the dividend date. Can you tell me the date on which the sale would not affect the payment of the dividend which is due in May?

I have been told BP is planning a share buyback. What is this, why do they do it and what does it mean for me?

Where can I find the dividend covers for various UK shares?

When it comes to shares, what is a yield and what are dividends and ex-dividends

I have inherited shares in a number of companies and would like to keep track of their value. Are there any internet sites or software applications which can give me an up-to-date valuation report?

I have 50,000 Telewest shares. The company became New Telewest earlier this year so should I have received a new share certificate and are the shares trading?

In March 2002, Barclays shares had a subdivision whereby 1 share of £1 was consolidated into 4 shares of 25p each. This had the effect of reducing the then share price from around £24 to around £6, although shareholders had four times as many shares as before. New certificates were issued and therefore the reader may find that one of the ordinary 25p certificates is for 312 shares (78 x 4). As such, £1 share certificates are now invalid. For the avoidance of any doubt, the reader could contact the Registrar to check the shareholding – The Registrar (to Barclays PLC), Aspect House, Spencer Road, Lancing, West Sussex. BN99 6DA, or telephone 0871 384 2055.

I have 1800 shares in RBS. I have seen the announcement about the rights issue. How many rights will I get and what will my options be?

(Please note this is an example – the figure can only be worked out properly when the shares go “ex-rights”, the date for which has not yet been announced, but should be in mid-May).

Assuming a current RBS share price of 370p

You have 1800 shares – therefore current value of holding £6660

Terms of the rights issue – 11 for 18 @ £2

Therefore, eligible to take up 1100 shares at a cost of £2200

You would now hold 2900 (1800 + 1100) shares at an overall “cost” of £8860 (£6660 + £2200) – therefore, theoretical ex-rights price = 305.5p

Shareholder options

Take up rights. This will cost you £2200 and will mean that your stake is totally undiluted post the rights issue.
Sell the rights or let them lapse. The price of the nil paid rights trading in the market (in this example) would be 105.5p (305.5p – 200p) and therefore you could sell in the market – 1100 x 105.5p = £1160.50 (less broker’s commission) or let them lapse and receive a cheque from the company in due course (at the prevailing market price when the offer closes, no commission). This is a dilution of the shareholding.
Sell sufficient of the rights to take up the balance (a “STUBS” transaction – also sometimes known as “tail swallowing”). The purpose of this manoeuvre is to take up as many rights as possible without spending any more on the shares – thus you would sell 720 shares (raising 720 x 105.5p = £759.60). This means with this money, you could take up the balance of your rights of 380 shares (1100 – 720) at £2 each, at a cost of £760 (380 x £2) – no cost incurred (commissions excluded from example). This would be a partial dilution of the holding.

Given the difficult state of the market at the moment, I have heard talk of so-called “defensive” and “cyclical” shares. What exactly is the difference?

Defensive shares are best described as being industries which are largely unaffected by different parts of the economic cycle, because they provide certain services.

For example, the utility companies are classically defensive shares. Whatever the state of the economy, we all continue to need water, electricity and gas.

This is not to say that defensive shares will not suffer at all in a prolonged downturn, so much as they will suffer less than their cyclical counterparts.

Other sectors, however, are more cyclical by nature, and their fortunes will change as time goes on.

For example, at certain times during the economy, the makers of luxury goods and certain retailers will benefit from the consumers’ feel good factor.

Similarly, when things turn tough, so can the performance of these companies’ shares. The different seasons of the year can also result in a company having busy and quiet periods. In essence, these companies benefit during times of economic growth and then decline during recession.

The accepted wisdom is that if consumer spending starts to flag, the first sectors which will be hit are likely to be the retailers, housebuilders, motor distributors and then other companies which deal directly with consumers. This then tends to feed through to those companies which supply the goods and services to the High Street, who in turn trim their own capital investment and purchase of raw materials.

Professional investors, naturally, have their own agenda here. The generally accepted wisdom is to go “underweight” on cyclical shares in anticipation of a recession and then “overweight” as it bottoms out. Since most in the market have a similar strategy, share prices are at any time anticipating these economic changes long before they actually happen.

There is indeed and this is an area which has been attracting increasing attention. The practice of collecting share certificates – or scripophily as it is known – has been around for some time now. The International Bond and Share Society is a good place to start, at www.scripophily.org. Given that share certificates go back over hundreds of years, there are many interesting moments in history which can be captured by an old share certificate, and on rarer examples you may even find an original signature when the certificate was first signed, for example, by John D Rockefeller or even Walt Disney. As time goes on, even existing share certificates which would otherwise be worthless may gain some value due to their historical interest or even the artistry involved in the design of certain older certs. It is an interesting subject and the website as quoted above has a host of information on the subject.

I have just found some old certificates in ICI but cannot find their current share quote anywhere. Can you help?

ICI was taken over in December 2007 by Akzo Nobel of Holland (technically it was a Scheme of Arrangement, which is the same as a takeover, without the need to hand in the certificates). The deal was worth some £8 billion.

You should have received some documentation at the time – have you recently moved and not advised the Registrar? Does that also apply to any other shareholdings you may have?

In terms of ICI, this was a cash offer of 670p per share, although there was a Loan Note Alternative of £1 of loan notes per £1 cash consideration - however, you would have had to have elected to get this at the time the documentation was posted to you.

At the same time an interim dividend of 5p per share was paid and ICI's London listing was removed on 3 January 2008. It is unlikely that you can now elect for the Loan Notes, but you might wish to try the ICI Shareholders' helpline on 0870 694 0472 and also to try to claim your (presumably unpaid) dividend.

How could a parent buy and sell shares on behalf of a child? Can shares be bought by the parent but with the child’s name on the certificate? What, if any, are the tax implications of doing this?

Children under the age of 18 are not allowed to hold shares directly. The usual practice is for a relative to hold the shares on their behalf, using a designation account, where the child’s initials form the designation.

This would be the same whether you use a Nominee Account or hold certificates. Any dealing would have to be done by the relative.

Cash ISAs are open to 16 & 17 year olds, but you have to be 18 to own a Shares ISA (You cannot hold an ISA on behalf of children).

Everyone (including children) has their own CGT limit, so if shares bought on behalf on a child rise significantly, they will have to pay CGT. The same applies to Income Tax and if shares bought for a child generate sufficient income, they will again have to pay tax.

As for satisfying the HMRC that a designated account is actually held on behalf of a child as opposed to your own savings vehicle is a different matter. As far as we are aware, the Inland Revenue will be fairly sensible about this. For example, if you have an account designated ABC and you have a child called Andrew Ben Charles, then you should have a pretty good case. If, however, the designated account was set up before the birth of a child, or there are multiple designated accounts which number over a certain amount of children, this may be more difficult to prove.

All British Energy certificates were replaced by new ones in British Energy Group in January 2005, with the result that any certificates dated prior to this are now invalid. At that time, shareholders had the option to accept new shares and warrants in British Energy Group or take cash. If no election was made, the shareholder automatically received cash. Thus, if the wrong address was held at the Registrar, then it seems unlikely that you elected for shares. It also means that the cash would have been sent to the old address. The first step would be to phone the Registrars.

Ask them to check the shareholding, quoting the old address. If they confirm that there is no holding, ask them about the cheque that would have been sent in January 2005. Ask if it has been cashed yet. If not, request a duplicate cheque. On the other hand, if there is a shareholding, request duplicate certificates. The Registrar in question is Equiniti (formerly known as Lloyds TSB Registrars) and the phone number is 0870 600 3970.

Is there a way I can release my Capital Gains Tax liability from my shares without giving them up?

The reader is describing what is known as a "Bed and ISA", or share exchange. Every year you can make a certain level of gain without paying Capital Gains Tax, currently at £9200. However to realise that gain you actually need to sell your shares - if you want to hold on to them, the obvious solution could be to sell them and buy them back in an ISA.

By selling your shares you will realise any gains you have already made and make the most of your capital gains tax allowance. If you have shares showing a loss you can still benefit as you can offset the loss against any gains you make in the future. By then buying your shares back in an ISA you can continue to benefit from movement of the shares whilst protecting any future gains from tax.

Most stockbrokers will offer this service. By way of yardstick, for a Bed and ISA at Hargreaves Lansdown, we waive the normal stockbroking commission to sell your shares. All you pay is 1% (minimum £10, maximum £50) to buy your shares back within the ISA and stamp duty of 0.5%. Furthermore as we buy back the shares immediately, the only difference in price will be the standard bid offer spread. Thereafter, the annual management charge to hold shares is just 0.5% (+VAT).

What is the LIBOR rate that we have heard so much about during the credit crisis?

The London Inter-Bank Offer Rate (Libor) is the primary benchmark for interest rates around the world. It is basically the rate at which banks will lend to each other, and can be calculated over various timeframes (anything between one day and five years). It enables banks with liquidity requirements to borrow quickly from other banks, thus avoiding the need to hold excessive amounts of capital on their own balance sheets. The recent “freezing” of the credit market was a reflection of the fact that the banks had become unwilling to lend to each other, which in turn caused intervention by Central Banks around the world to inject some liquidity. Much more recently, the Libor rate has returned to levels previously seen before the US sub-prime fallout last summer.

Why have pharmaceutical stocks such as GlaxoSmithKline had such a torrid time recently?

The weakness of the pharmaceutical sector over the last few years has been due to the twin drags of the lack of new blockbuster drugs, with little visible in the pipeline, along with the imminent patent expiries on a number of existing drugs, thus removing a core income stream. Nonetheless, the long term story of higher margin specialist drugs for an ever ageing global population remains intact, whilst it appears that Western medicine is starting to become more accepted in Asia, and China in particular.

The fact that the larger companies have more recently been refining costs to improve margins should also bolster prospects going forward. For information, the current market consensus on the big three UK companies is as follows – GlaxoSmithKline (hold), AstraZeneca (hold), Shire Pharmaceuticals (buy).

What are PIBS and are they risky as an investment?

Several building societies and some banks began to issue Permanent Interest Bearing Shares (PIBS) in the early 1990s, and these became characterised by generally higher yields.

Part of the reason for these higher yields is the risk associated with them – there is no access to the Financial Services Compensation scheme, for example, should the issuer go bust and, in such an event, PIBS holders would rank below all other creditors. In addition, should the issuer decide for any reason to miss a payment, the interest is non-cumulative, that is the income would not be replaced.

Another point to bear in mind for PIBS is that whilst they do tend to display bond/gilt type characteristics – the price for example will react oppositely to the direction of interest rates – they are thinly traded, and your broker will need to bear this lack of liquidity in mind when buying (or indeed selling) PIBS on your behalf.

As a general rule, interest payments are made twice a year, though of course these dates vary between issuers. The price itself will be quoted “clean” to the investor, with accrued interest added or deducted accordingly (as for gilts). PIBS do not attract Capital Gains Tax, but Income Tax (although if held in an ISA for example this tax liability is mitigated).

The inherent risks of PIBS as described here are the main reason for the higher yields they tend to provide, subject to the usual risk/reward ratios. Yields do vary, but at the current time, they tend to range anything between 6% and 8%. Given the higher risk nature of PIBS as investments, it is generally accepted that they should only form part of a balanced and diversified portfolio.

With another interest rate decision due shortly, what are the sort of factors which will be taken into account by the Bank of England?

The Monetary Policy Committee (MPC) is tasked with setting interest rates and needs to gauge the current state of the economy in its deliberations. As ever, this month is no different, with a number of factors working against each other – the general market view at present is that rates will be left unchanged at the current level of 5.75%.

Amongst the many figures which the MPC must consider, the following five are probably the best known –

Retail sales. Are consumers continuing to spend regardless, or are the recent strong figures due to heavy discounting by the retailers? Does the situation need to be calmed down?
Growth (GDP). The current expectation is for growth in the economy to slow down in the final quarter of this year.
Housing market. A dilemma – it continues to appear that London and the South East potentially mask a slowdown in the wider country. Is the decline in mortgage approvals (for example) here to stay?
Inflation. Currently on target, but inflationary pressures remain – such as food prices and the oil prices recently brushing highs
Wider financial markets. Concerns from the US sub-prime fallout have recently resurfaced. Will this lead to the threat of recession in the US, with a potential knock-on impact to the UK?

It is generally felt that the MPC may maintain its “wait and see” attitude – as opposed to the more pre-emptive attitude of its US counterpart, the Federal Reserve - perhaps even delaying a potential rate cut until after the strength of the Christmas shopping season is known in early February.

What are the origins of the terms “bull” and “bear”?

We are, of course, all familiar with the terms “bull” and “bear” to signify rising and falling markets respectively. The origins of these phrases, as one might expect, goes back hundreds of years.

It has been suggested that the expressions relate to bull and bear fighting, previously a bloodsport in parts of Europe. Bulls would gore with their horns in an upward motion, whereas bears tended to swipe in a downward motion. The metaphor is obvious, but is unlikely to have been the true origin.

More likely is that the term “bear” derives from an old French proverb applied to the English market – “ ne vendez pas la peau de l’ours avant de l’avoir tué” (“don’t sell the bear’s skin before you’ve killed the bear”). This proverb was applied to speculators in the South Sea Bubble scheme around 1720, alluding to the risky practice of bear trappers who would sell on the skins before having caught them. Incidentally, the similar bearish term of share prices “going south” also finds its roots in the disaster of the South Sea Bubble.

As for the bull, it became the natural term to be paired with the bear to denote the opposite trend or activity, i.e. buying stock in the hope of a price rise.

One of the first examples of these terms appearing in print was in Thomas Mortimer’s 1785 book, “Every Man His Own Broker”. At that time the Market was situated in Exchange Alley, or simply "the Alley”. He said that “a man who in March buys in the Alley 40,000 pounds [of stocks for settlement] for May, and at the same time is not worth ten pounds in the world ... [he] is a Bull, till such time as he can discharge himself of his heavy burden by selling it to another person, and so adjusting his account, which, if the whole house be Bulls, he will be obliged to do at a considerable loss.”

And the bear? This was “a person who has agreed to sell any quantity of the public funds more than he is possessed of, and often without being possessed of any at all, which, nevertheless, he is obliged to deliver against a certain time: before this time arrives, he is continually going up and down seeking ... whose property he can devour; you will find him in a continual hurry; always with alarm, surprise, and eagerness painted on his countenance; greedily swallowing the least report of bad news; rejoicing in mischief, or any misfortune that may bring about the wished for change of falling stocks, that he may buy in low, and so settle his accounts to advantage.”

Maybe a case of “Plus ça change, plus c’est la même chose” – the more that things change, the more they stay the same!

I’ve recently read a lot about rising food and agricultural prices. Why might this be and is there a relatively simple way for a private investor such as myself to gain exposure to such a trend?

With wheat prices recently reaching record highs, agriculture has moved into investors’ thoughts of late. It appears that concerns in relation to possible global warming having been partly responsible. Not only are more erratic temperatures causing concerns for crop failures – in different parts of the world both droughts and floods have played havoc with crop production - but a move towards using biofuels such as sugar cane and palm oils is also exerting pressure on land which once might have been used for more traditional crops – such as wheat.

Investors wishing to gain diversified exposure to such trends might like to consider funds, for example. An Exchange Traded Fund (ETF) in the form of the ETFS Agriculture DJ-AIGCI fund could be considered. The epic code is AIGA.A. The fund is designed to track the Dow Jones-AIG Agriculture sub index. Please note that this particular ETF is dealt in US dollars, providing UK based investors with an additional currency risk.

Another possibility might something such as the CF Eclectica Agriculture OEIC. This is a traditional open end fund established in order to achieve long term capital growth via a portfolio of global equity investments that are involved in, related to, concerned with or affected by agriculture and farming related issues.

There are many such examples and potential investors should consider researching the area before committing. Once decided, your broker should be able to transact these funds on your behalf.

This phrase is said to have its origins in the insurance industry, whereby it is said that if someone is protected too well (against an accident for example), then they are more likely to behave recklessly, since they are more than financially covered.

In market terms, the principle is much the same. The debate on Wall Street at the moment revolves around the idea that if a government or central bank bails out a financial institution which is in difficulty, this may encourage those institutions to lend more riskily in the future. This would be on the basis that they know that ultimately they would be protected, regardless of the success or otherwise of their loans. In addition, and as a rule, riskier loans tend to be the most profitable for lenders. As with anything else it is, of course, not as quite straightforward as this and the liquidity of the money markets is something which the Federal Reserve has a duty to protect. Similarly, it would appear very likely that at least one US interest rate cut is imminent, with the possibility of more to follow, in an attempt to shore up the US economy. Any weakness in that economy, much less a recession, would have a knock-on effect globally, since it remains the largest world economy.

For the individual, a simple example might be a credit card, which usually comes with a spending limit. Applying moral hazard to this would be the fear that without such a limit, the borrower would spend recklessly, which could ultimately lead to a default for the lender.

The chances of success may not be high, but there are a couple of venues which may be worth exploring.

Firstly (and assuming that the shares to which you refer are/were UK listed), there are basically three Registrars covering the market, so there is every chance your holdings will be at one or all of these. You will certainly need to provide details of your full name and address at the time, and there may be a faint hope that the Registrars may be able to track something down. The three in question are Lloyds TSB Registrars (telephone 0870 600 3989), Capita Registrars (0870 162 3100) and Computershare (no telephone number unless you know the stocks in question – thus, postal address The Registrar, Computershare Investor Services PLC, PO Box 82, The Pavilions, Bridgwater Road, Bristol. BS99 7NH).

Alternatively, if you approach the broker through whom you dealt, you will need details as above plus your client reference number if you still have access to it. Failing this, it will be extremely difficult for the broker to be able to pinpoint your trades. Good luck!

In the first instance, treat this with extreme caution. As with most things, if something sounds too good to be true, then it usually is.

What you have described sounds like it could be a “boiler room” scam, which unfortunately is becoming all too common. A UK investor may be targeted (the fraudsters may have found your name on a company register showing that you own other shares) with the promise to invest in a company which, at best, is not a listed company and, at worst, does not exist. The company itself is usually domiciled abroad which means that it is outside the remit of the Financial Services Authority (FSA). The very fact that you were cold called should ring alarm bells, since cold calling is not allowed by UK authorised investment firms. The chances are that the shares being offered are in a third country (such as the US) with payment required to be made to yet another country. This “four dimensional” crime, as the City of London Police describe it, is increasingly sophisticated and difficult to convict. As a first rule of thumb, check whether the company calling you is regulated by the FSA – if not, it is probably best avoided. After that, try to find evidence of their location and, indeed, the “sure fire” investment they are peddling. Above all, however, if you are in any doubt – walk away from the situation.

What is the difference between the terms adjusted earnings per share and diluted earnings per share?

First of all, basic Earnings Per Share (EPS) is defined as the profit attributable to equity shareholders divided by the number of shares in issue.

Basic EPS

Profit attributable to equity shareholders
Number of shares in issue

However, in practice, life is a little more complicated. Whilst many calculations are made using the number of shares in issue at the time of the financial year end, best practice is to use the ‘weighted number of shares in issue over the year' – as the number of shares in issue can change greatly over a year's course.

To provide even greater accuracy, a Diluted EPS calculation is often made. Diluted EPS is a calculation made allowing for the many other types of share which a company may have in issue and which will/may eventually become ordinary equity, such as convertible preference shares, warrants or convertible debt. Diluted EPS, in effect, provides a better gauge of the quality of a company's earnings.

Adjusted EPS is a calculation made in order to make a better comparison from one year to the next. Here, a one off-profit such as the sale of a company property is excluded from the profit attributable to equity shareholders. Another example might be foreign exchange fluctuations which have, by luck, resulted in an additional profit.

In summary, dilutive calculations provide a better overall picture, taking into effect likely future events, whilst adjusted calculations are there to make sure we are comparing like with like.

The growth of Employee Savings Related Share Option schemes has again grabbed the spotlight of late, as many companies’ share prices have benefited from the recent strength of global stock markets.

The purists would say that as an investment, their popularity is obvious. Usually a monthly amount is put aside over a 3 or 5 year period, at the end of which the employee has the choice either to convert this cash to shares (if the price is higher than when the plan was taken out, the option price) or simply to have the cash returned if the current share price is below the option price. In the latter case, the only loss to the saver is in terms of the interest they could have earned over the period, although there would be no loss of capital. As such, they have become very popular schemes and are an excellent way to be introduced to owning shares.

With regard to the specific question – and bearing in mind that the reader should seek expert tax advice in addition, the situation is as follows.

Assuming the scheme is an approved scheme and the option has been held for the requisite period then there will be no income tax or CGT payable on exercise of the option.

Once the option has been exercised and the shares are then held, any subsequent sale will be liable to CGT on any gain. The base cost for this CGT calculation is the price paid for the shares. This base cost may be liable to indexation if the option was exercised prior to April 1998 and subsequent taper relief.

For any disposal (of the shares) after 1998, taper relief will apply on the gain between the sale proceeds and (indexed) acquisition cost. For most employees, business asset taper relief will apply which gives 75% relief on the gain if the shares are held for two years.

After taper relief has been applied, if the subsequent gain takes the investor above his CGT exemption for that tax year (assuming the exemption is not being used elsewhere) only then tax will be due.

What are the timings of a normal trading day on the London Stock Exchange?

The working day begins at 07.00, when the Regulatory News Service (RNS) opens. Announcements are made at this time, such as company results for example, giving the market a chance to digest such figures before the pre-Market Auction at 07.50. For ten minutes, the market has a chance to find its level in individual stocks and therefore the indices before the official Market open at 08.00. At 14.30, there is often a flurry of activity as the US markets open.

The UK market then officially closes at 16.30, with a post-Market auction lasting until 16.35. The RNS then officially closes at 18.30 - any significant announcements “after hours” will usually be picked up by the Press and Media in general.

As a result of the takeover, shareholders received 935p per share in cash around July 2006. Those who chose to do nothing at the time are now known as ‘dissenting shareholders’ and appear on a special register. Assuming you still hold a share certificate, it can be sent to the Registrars with a brief letter asking them to forward the takeover proceeds to you.

If you cannot find your share certificate, the process is similar to the above, however, there maybe an extra form or two to complete and a fee (typically £50) will be involved to replace your lost certificate. Keysearch have been appointed by the firm that bought BAA to tidy up the Register and ensure all shareholders receive their proceeds. The fee does seem quite expensive, particularly if yours was a large holding. However, if you prefer someone else to handle these things for you, Keysearch will no doubt be only too happy to help.

Should you wish to proceed yourself, the Registrar is Computershare, and the address is Computershare Investor Services PLC, PO Box 82, The Pavilions, Bridgwater Road, Bristol BS99 7NH.

Should I invest for income or for growth?

In much the same way that investors have different attitudes to risk (none, low, medium or high) so they have different attitudes to and requirements from their investments. Traditionally, as they approach retirement age, they would normally looking for income to supplement their day to day living, whereas perhaps at a younger age they may have a requirement for capital growth, to build up the value of their portfolio. In addition, at any given time, they may wish to opt for a mixture of both.

Broadly speaking, income (or high yielding) shares are those which are characterised by historically high dividend payouts – although this cannot be guaranteed in the future necessarily – whereas capital growth shares may be characterised, for example, by smaller companies near the beginning of their corporate life whose aim is to grow the business (and therefore the share price) whilst being less concerned about dividend payments, perhaps because any profits are ploughed back into the business.

On some occasions, investors may be fortunate enough to benefit from a situation where they actually receive both income and capital growth – take the recent examples of Lloyds TSB and United Utilities, both traditionally high yielding shares whose share prices have received an extra boost due to persistent bid speculation.

I have shares in a company which has just been taken over. Within the paperwork I am being offered either cash or Loan notes for my existing shares. What exactly are Loan notes?

Most investors aim to use their annual Capital Gains Tax allowance (currently £9200) by selling enough shares up to a certain level and staying within the amount allowed before CGT becomes due.

In a takeover situation, however, if the offer is just for cash (in exchange for the shares held), a CGT liability might arise through no fault of the shareholder as the entire amount of the holding is effectively sold to the new company. Thus, for some time now, acquiring companies have been offering a loan note alternative to the cash offer.

Loans notes are effectively IOUs. The issuing company – normally the predator in a takeover situation - promises to pay investors a set amount of money at some point in the future. Normally the issuing company will write to holders of the loan notes and ask if they wish to redeem them. Loan notes are still securities in the new company, but they are not usually quoted, and are redeemable at set dates, normally twice a year. Their effective purpose is to help mitigate a potential Capital Gains Tax (CGT) liability, by enabling the investor to defer the CGT liability and to sell the shares at a pace which ties in with their CGT allowance.

New Dragon Oil share certificates were issued in September 1997, with anything issued before that being invalid. Since that time the shares have changed from Irish punts to Euros, but the quantity of shares and the certificates remained unchanged.

The traditional way to trade shares (either buying or selling) is through a stockbroker. The stockbroker charges a commission for which they ensure that both the buyer and the seller of shares are genuine, that the shareholding is genuine and that the money and shares change hands smoothly. Equally importantly, they will ensure that you achieve a fair price for the shares. Commissions these days are very reasonable, with a starting rate of around £10 not being uncommon.

Technically, it is possible to sell your shares without a stockbroker, in much the same way it is possible to sell your house without an estate agent, but you will obviously bear all the risks and have to ensure that all procedures and laws are followed. If you are confident on these points ( eg you get a good price, stamp duty is paid to HMRC, the Registrar is informed, etc) there is no reason why you cannot sell your shares to your neighbour or anyone else.

It is also worth remembering that Dragon Oil shares are Irish Registered and as such, all transactions must involve paying stamp duty to the Irish Government, which will complicate the process even further if a stockbroker is not involved.

I have been offered a Save As You Earn/savings related share option scheme by my company. What should I be looking out for?

The growth of Employee Savings Related Share Option schemes has again grabbed the spotlight of late (Tesco employees, for example) as many companies’ share prices have benefited from the recent strength of global stock markets.

The purists would say that as an investment, their popularity is obvious. Usually a monthly amount is put aside over a 3 or 5 year period, at the end of which the employee has the choice either to convert this cash to shares (if the price is higher than when the plan was taken out, the option price) or simply to have the cash returned if the current share price is below the option price. In the latter case, the only loss to the saver is in terms of the interest they could have earned over the period, although there would be no loss of capital. As a further sweetener, the option price is also, often, at a discount to the market value of the shares at the time.

Whilst there may be a CGT liability on selling the shares (after the CGT allowance and taper relief have been applied), no income tax or National Insurance is payable on receipt of your option. As such, these schemes have become very popular and are furthermore an excellent way to be introduced to owning shares.

What exactly is meant by the terms “bottom-up” and “top-down” investing?

“Bottom-up investing” is a term often used in the fund management industry to describe the style of investing which a particular fund manager adopts. Bottom-up investing focuses on the analysis of individual stocks and de-emphasises the significance of economic and market cycles.

Bottom-up investing assumes that individual companies can do well even in industries or economies that are not performing particularly well. “Top-down investing”, on the other hand, is the complete opposite.

Top-down investing focuses on the analysis of economic and market cycles and therefore de-emphasises the significance of individual stock picking.

Top-down investing is an attempt to select individual stocks and industry sectors which suit the point at which the fund manager believes the economy, stock market cycle or indeed industry will move to next.

Designations on a certificate do not convey ownership to anyone other than the registered shareholder (i.e. the parent). In order to transfer the shares, the reader should contact the registrar and 'gift' the shares to the child. Since the shares have been 'gifted', then the new owner is deemed to have paid the same price as the original purchaser on the same date, so all tax liabilities simply transfer from one to another. In terms of the procedure itself, an appropriately completed Stock Transfer Form (available from legal stationers) needs to be sent to the Registrar. The Registrars have details on how to complete this form, but a Stockbroker should also be able to help.

The certificate will also need to be sent with the Stock Transfer Form. If the certificate were to get lost in the post, the Registrar would charge a fee to get a replacement (typically about £50 in total). For peace of mind, the reader may wish to send the documents by Recorded Delivery or Special Delivery. Should the reader be able to deliver ‘by hand', make sure to ask for a receipt for the documents.

BAA was taken over by the Spanish company Ferrovial for 935p in cash. There was a loan note alternative, but this may not have been available for US investors. This would need to be verified with the company, as would the US tax position for UK shares.

In terms of this query, the prices are not readily available on the Internet to the best of our knowledge. For other readers requiring historic prices, the two obvious options are either to request this information from their stockbroker or to contact the London Stock Exchange. The LSE's “bible” of historic prices, the “Stock Exchange Daily Official List” is printed every day and can be obtained at £10 per day for old issues. The date mentioned of 28 August 1999 was in fact a Saturday, so we have found closing prices for the nearest two working days – Friday 27 August 641.5p and (following a Bank Holiday) Tuesday 31 August 650p.

I have a certificate for 1000 shares in London Securities. They are ordinary 15p shares and the cert is dated 1988. Are they of any value?

In 1992, the shares underwent a consolidation of 35 Ord. 15p shares into 1 Ord 1p share. This would have given you a new holding of 28 shares. However, at this point the old certificates became invalid and new certs were issued.

In 1994, there was a further consolidation of 100 Ord. 1p into 1 Ord. 10p which would have wiped out your holding. In 2003 the company changed its name to London Security plc and they look to be still trading now.

It is unlikely therefore that you still have a holding, and certainly the certificate you have has been replaced. For the removal of any doubt, you might like to contact the Registrars for the company – Capita Registrars, tel 0870 162 3100.

The date to watch out for is the “ex-dividend” date. This is effectively the cut-off time for the next dividend (most companies pay a dividend twice a year) and, all things being equal, the share price will be marked down that day by the amount of the dividend. Thus, if you are buying shares and want to ensure you receive the next dividend, you would need to buy the shares “cum dividend” (with dividend) any time before the “ex” date. Most companies will have details of the ex-dividend date on their website.

In broader terms, and in the current environment of (historically) low interest and savings rates, higher yielding equities can provide a welcome bonus to a portfolio. At the present time, many companies are enjoying higher cash balances which give them the ability to pay out more in dividends.

By looking at studies of equity returns over the years, it quickly becomes apparent just how important it is to consider the dividend and not just the capital element. In particular, the reinvestment of dividends can have dramatic results. For example, £1000 invested in equities at the end of 1899 would, by the end of 2005, have given a return in real terms of £1970. With income reinvested, however, this figure would have been £224 260, over a hundred times greater. (Source: Barclays Capital Equity-Gilt Study 2005).

I have some O2 shares. What are they worth and how do I cash them in?

O2 shares were subject to a takeover in February 2006 by the Spanish company Telefonica SA, for £2 in cash. (There was a Loan Note Alternative at the time, which we believe is no longer available).

The ‘Compulsory Acquisition’ phase ended in May 2006. If you still have your share certificate, you are now known as a ‘dissenting shareholder’ and will appear on the shareholder register as such.

Your £2 per share will effectively still be waiting for you and it can be claimed by contacting Lloyds TSB Registrars on 0870 850 6907, address Lloyds TSB Registrars, The Causeway, Worthing, West Sussex. BN99 6DA. (The telephone number is purely for dissenting shareholders and not for other enquiries).

The market seems weak at the moment, what has the dollar got to do with this?

Currency movements appear to be underlying current market declines. Leading into the traditionally quiet month of December, corporate earnings begin to take a back seat, leaving equity investors looking for other factors to concentrate on.

Weakness in the US dollar is potentially bad news for future UK corporate profits, Glaxo, Wolseley, Hanson and Pearson are all classic examples, since each conducts a lot of business in the US.

As the major global currency, the impact of the US Dollar weighs heavily on global commerce. The current opinion for the future of the dollar from the experts in the foreign exchange markets tends to be coloured by a number of concerns. The twin US deficits of the trade and budget balances have long been a concern from a national perspective.

Furthermore, Central Asian banks, which hold vast reserves in US dollars, are worrying about further dollar weakness and switching out in anticipation - with the Euro being first on their switch lists. This is potentially magnifying the US dollar's current decline.

However, the major underlying concern is likely to relate to future interest rate movements. US interest rates – despite recent steadfast comments from the Fed - could be heading downwards given recent weak economic data, whilst the UK and European Central Bank's next moves look likely to be up. This is all exaggerating potential interest rate differentials.

Of course, there are those in the markets who believe that the US government is eager to see a weaker US dollar. US exports become much more attractive and a weaker currency should help stem the tide of Asian imports, particularly from China.

I have shares in British Leyland. Are they worth anything at all?

The short answer is very possibly.

Originally called British Leyland Ltd, the company changed its name in July 1978 to BL plc. In July 1986, there was a further name change to Rover Group. The company was then acquired by British Aerospace in October 1988 for 100p per share (or, as an alternative, 1 British Aerospace share for every 4.93 Rover shares held). Since then, British Aerospace (now known as BAE Systems) split 1 into 4 shares in May 1998 and these shares are still valid today, the current price being around about 418p.

If the reader needs full confirmation, it would be worthwhile contacting the Registrars of the company – Lloyds TSB Registrars, The Causeway, Worthing, West Sussex. BN99 6DA. Telephone 0870 600 3989.

I have noticed that Tesco shares are doing well recently. What are the reasons for this?

After quite a long period of relative underperformance, the shares have indeed had something of a run of late.

Over the last 6 months, the share price has increased nearly 25% to its current level of around 395p. Recent interim results at the beginning of October showed that, if investors had any doubts about the sustainability of Tesco's growth strategy in its core food area, then these figures answered them. The group continues to go from strength to strength. It wasn’t just rival supermarkets which were looking on with envy, but the majority of general retailers were again casting a worried eye - with UK non-food sales on a like-for-like basis having increased by an impressive 12.6pc. Overall, Tesco remains the stockmarket darling of not only the food retailers, but of the entire UK retail sector. It is the only player with a serious and credible international expansion policy.

Despite the strength of the share price in recent months, market consensus opinion remains cautiously positive.

I have a share certificate for 196 Ordinary Shares of IR25 pence each in Dragon Oil plc which I acquired in 1997. I have since remarried and they are in my old married name. Can you tell me please:

If it is worth anything, and if so how much.

How I would redeem it, especially given it is in my old married name.

Dragon Oil certificates from 1997 would appear to be still valid. If the cert has a red border – it is valid. The price is about 145p per share. To be certain about the validity, it is best to check with the Registrar – in this case, Computershare Investor Services, PO Box 82 , The Pavilions, Bridgwater Road , Bristol . BS99 7NH.

In order to change the name on a share certificate, you will need to send the share certificate to the Registrars, together with the official documentation confirming the name change (marriage cert, deed poll, etc). Confusingly, in this example that is the Irish part of the Registrar – at Computershare Investor Services ( Ireland ) Ltd, Heron House, Corrig Road , Sandyford Industrial Estate, Dublin 18, Ireland .

Once the name change has been recorded, the shares can be sold by any stockbroker.

The shares could probably be sold without the name change taking place, but the stockbroker may charge extra for the additional work of performing the name change themselves.

Chaco Resources is an active stock on the market, but I do not see much press coverage. Where can I pick up the latest news on this stock?

Chaco Resources is an AIM listed company with a market capitalisation of approximately £77 million. It is a group engaged in investment in oil and gas exploration and development. In addition, it is not a company which makes many announcements, except regulatory ones – the last one, for instance, was simply confirmation that the AGM will be held on 10th October. The reader may wish to consider finding websites or indeed publications which specialise in such “growth” stocks. There is also a company website which should give further information and, for the latest news on the shares and a general background to the company it may be worthwhile trying either or both of the following links - http://uk.finance.yahoo.com/q?d=t&p=&q=q&s=chp&m=L or http://www.hemscott.com/companies/company-summary.do?companyId=4437

What is Enterprise Value?

Usually a company is measured in value by its market capitalisation, that is, the number of shares in issue multiplied by the share price. Enterprise value can be used as an alternative, and is calculated as market capitalisation plus debt, minority interests and preferred shares, less cash.

In some ways this is a more accurate value of a company’s worth since, in the event of a takeover for example, whilst the market capitalisation is relevant, the acquiring company will be receiving the target’s cash and of course taking on its debt also. As such, it has been described as the “theoretical takeover price”.

Can you please tell me why the Pacific Media shares which I have held for many years have increased significantly during the last two weeks?

A capital reorganisation is the reason for the increase in the share price. This was effective on the 1st August and the shares went to a post reorganisation price of around 60p, although they have subsequently halved.

The following are excerpts from a statement made by the Company on 30 June 2006 – “ Since 20 January 2000, the Company's share price has fallen from 14.00 to its current price of 0.05p. As a result of this, the substantial majority of the Company's shareholder base by number holds only a small minority of the existing ordinary shares of 0.01p each (Existing Ordinary Shares) by value. As at 29 June 2006 , Pacific Media had approximately 35,000 Shareholders. Of these, approximately 29,500 Shareholders (representing some 84 per cent. of the total number of Shareholders) have registered holdings of less than 40,000 Existing Ordinary Shares which would be valued at less than £20.00 at yesterday's closing price of 0.05p……Under the proposed terms of the Capital Reorganisation, shareholders who hold fewer than 40,000 Existing Ordinary Shares would not be entitled to receive any new ordinary shares of 16p each issued pursuant to the Capital Reorganisation (New Ordinary Shares). However, in accordance with the Listing Rules, these fractional entitlements would be aggregated and sold in the market for the benefit of Shareholders and distributed to them, except that any net proceeds which after the deduction of the expenses of sale are less than 5.00 would be retained for the benefit of the Company. This would allow these shareholders to dispose of their investment without incurring the associated dealing costs…..The Directors are proposing to consolidate every 40,000 Existing Ordinary Shares into one intermediate ordinary share of 4 each (Consolidation) and to sub- divide each intermediate ordinary share of 4 each thereby arising into 25 New Ordinary Shares (Sub-division). On completion of the Capital Reorganisation, each Shareholder shall…receive 25 New Ordinary Shares for every 40,000 Existing Ordinary Shares held by them on the Record Date.”

Depending on the number of shares the reader holds, it may be worthwhile contacting the company, or indeed the Registrar, to find out how he or she stands with regard to the above.

I’m obviously missing something about the “£9 billion returned to shareholders”. I stand to receive about £600 shortly, while my newly reduced shares are worth about £600 less. What is the point of this expensive exercise?

The reader refers to the announcement by Vodafone in May this year of a special dividend to shareholders resulting from the disposal of their Japanese unit. The monies (by way of the issue of “B” shares, or cash) were payable on 11 August at 15 pence per share.

From a market perspective, this is positive news. It centres around the return on capital, which institutional investors believe they can maximise by investing these monies elsewhere, rather than the cash effectively sitting in the Vodafone bank account. It also lessens the likelihood of an acquisition being made, which would not be received favourably whilst Vodafone continues to attempt to get its own house in order. Whether it is an expensive exercise is moot – companies are very streamlined in the issuance of shares and dividends at relatively low cost – and of course it is a small price to pay as opposed to making an acquisition which did not work out, or indeed otherwise failing to put this cash to good use.

I bought some shares many years ago but in my parents’ name (with my initials suffixed, I believe this was because of my age). How do I transfer them back fully into my name?

The probable reason for the suffix is, as you rightly suggest, that people under the age of 18 are unable to hold shares in their own name. For this procedure, you will need to gift the shares. An appropriately completed Stock Transfer Form (available from legal stationers) needs to be sent to the Registrar. The Registrars have details on how to complete this form, but a Stockbroker should also be able to help.

The certificate will also need to be sent with the Stock Transfer Form. If the certificate were to get lost in the post, the Registrar would charge a fee to get a replacement (typically about £50 in total). For peace of mind, you may wish to send the documents by Recorded Delivery or Special Delivery. Should you be able to deliver ‘by hand', make sure you get a receipt for the documents.

As a Vodafone shareholder, am I right in thinking I should have received a cash payment from the company?

Shareholders as at the close of business on 28 July 2006 will participate in a return of cash, which is being achieved by an issue of ‘B' shares. Shareholders will receive 1 ‘B' share for every share held. The company is also undergoing a consolidation whereby shareholders will receive 7 New Ordinary Shares for every 8 shares currently held – this consolidation should maintain the comparability of future and historic share prices. The new shares will be issued on the 31 July 2006 .

The ‘B' shares will be redeemable for 15p per ‘B' share and holders have 3 options:

1) Receive an Income payment

2) Receive a Capital payment

3) Defer redemption until a future date.

In all cases holders will receive a payment of 15p per share. If holders opt for either option 1 or 2 then the proceeds are expected on or around the 11 August. In the case of option 3 the ‘B' shares will be redeemable in January and July in 2007 and 2008 with all outstanding ‘B' shares being redeemed in August 2008. The B shares will not be listed, therefore if you elect to defer redemption then you will only be able to redeem them at one of the redemption opportunities.

What is behind the recent share price hike in the supermarket William Morrison?

Over the last week the share price has indeed risen by some 4%, based on rumours of a potential £6.5 billion bid for the company. It is not clear who might be in the frame although a private equity consortium remains the most favoured idea, should a bid emerge.

Morrisons had a torrid time in 2005 in particular, struggling as it did to complete the integration of its purchase of rival Safeway. There were a number of profit warnings throughout the year and, not surprisingly, the shares underperformed the wider market.

In comments made earlier this year by the company, the market took some glimmers of hope that perhaps the worst was over and, with the possibility of a bid now imminent, the shares are generally regarded as worth holding onto.

Do you know of any free reports on the Standard Life flotation?

With the price range having been confirmed as far as possible, and with the likelihood of the float being set for July, there have been some more developments around the whole issue of the demutualisation. Hargreaves Lansdown have produced a free report.

Read Yahoo!'s special feature about the Standard Life flotation .

Could you tell me what is happening with the Whitbread share price?

There has been a “Scheme of Arrangement”, effective 26 June 2006, whereby shareholders have received 17 new ordinary shares for every 20 existing ordinary shares, as well as 1 new B share for every 1 existing ordinary share held (B shares can be redeemed at 155p each). This means that the actual shareholding value should remained unchanged, as follows –

Closing price of Whitbread Friday 23 rd June = 1125p. Theoretical opening price on Monday 26 th June = 1125p x 20/17 = 1323.53p less value of B share 155p = 1168.53p. By way of interest, the shares actually closed on Monday at 1156p.

Please note that new certificates will be despatched on or around 6 th July and this will mean that existing certificates become invalid. If the reader does not receive the replacement certificate, he or she should contact the Registrar – Computershare Investor Services, on 0870 702 0002.

As a BAA shareholder, what are the terms of the Ferrovial offer?

Following Goldman Sachs' decision to withdraw from the battle to acquire BAA, the Ferrovial led consortium has won the day with its 950.25p per share offer. BAA's management is advising shareholders to accept the terms of the bid so it seems most likely that the offer will succeed. The terms/choices – bear in mind that action is required quickly, responses for acceptances have a deadline of 26 June - are as follows –

• the “ordinary recommended final offer” of 950.25p cash, comprising 935p cash per share and BAA's final dividend of 15.25p per share

• the “ordinary partial share alternative” of 898.5p cash per share plus one fifth of an “Altitude Assets” share. These shares will be quoted on AIM and will enable the investor to retain a stake in the “new” company. The Altitude Assets shares are initially valued at 184.75p, so a fifth of that value equates to 36.95p

• the “loan note alternative” where part of the proceeds can be taken in loan notes, thus deferring the individual's CGT liability, if there is one

• the “ordinary additional share election” whereby the investor can request less cash and more Altitude Assets shares.

What is meant by the term “triple witching”?

“Triple Witching” in the market signals the quarterly occurrence (on the third Friday in June, September, December and March) whereby the contracts for stock index futures, index options and equity options all expire on the same day. It takes place between 10.10am and 10.30am and so the next one is due this Friday, the 16 th June.

Between these times, there are usually high levels of trading activity coupled with unpredictable price movements. This is due to the market realigning options, futures and underlying ordinary share prices. At Hargreaves Lansdown , our advice to clients is, if your order is not time critical, then consider holding off until later in the day when the market has stabilised. In addition, Friday's event could prove particularly volatile given the wild gyrations which the markets have endured over recent weeks.

If clients wish to trade on Friday morning, they should consider:

• Setting a limit price on any order placed

• Monitoring the spread and volatility of the stock in question

• Standing back entirely from the market for this period if the order is not time critical

What has happened to the Intercontinental Hotels Group share price?

Since its separation from Six Continents in April 2003, IHG has made a number of hotel disposals and has returned some £2.75 billion to shareholders in the form of share buybacks and special dividends. The latest of these became effective on Monday 12 th June, whereby a consolidation saw holders of 8 ordinary 10p shares receiving 7 ordinary 11/37p shares, as well as a special dividend of 118p. The share price was therefore adjusted accordingly and shareholders will receive new share certificates shortly after 22 nd June. In terms of the value of shareholdings, these will have remained the same less the special dividend. For example, a holder of 560 “old” shares had a value of (closing price 9 th June 941.5p) = £5272.40. As of Monday (theoretical opening price of 958p) they would have 490 “new” shares = £4694.20. In addition they would have received a special dividend of 490 x 118p = £578.20. Total = £4694.20 + £578.20 = £5272.40.

A number of the publications I read have sections devoted to “Directors' dealings”. Is the amount of space which they take up justified?

My colleague Keith Bowman has recently looked at this issue and had the following comment – “In theory, no one should be in a better position to judge the potential of a company's sales, profits and future prospects than its directors. With this in mind, investors would be wise to pay some attention to the world of directors' share dealings for potential hints on what the future may bring.

However, at this point, it is worth noting that as is often the case in life, the theory and the practice do not always tally. History is littered with examples where the signals regarding directors' dealings eventually proved incorrect. Directors do occasionally prove overconfident in their company's likely future sales progress and therefore profit growth. Being the leader and possibly founder of a company can generate an element of almost blind optimism in its prospects.

Directors could be buying purely to send a note of optimism to investors. While this might seem an expensive habit, performance bonuses paid to directors can be linked to share price performance. Most directors are fully aware that the wider world of investors will be watching their every share transaction.

A large director's share sale could be being made for tax purposes in order to manage capital gains tax liabilities for example sake, as opposed to investors' suspicions that trading at the company must be deteriorating. Furthermore, a director may find him or herself entangled in a messy divorce and therefore having to sell assets (shares in his or her own company) in order to settle the affair. A sale could simply be being made because the director now considers his investment exposure to the fortunes of his/her own company are now too high, and portfolio diversification needs to be introduced.

Furthermore, do not forget that there are legal rules surrounding the timing of directors share transactions. A company moves into what is known as its ‘closed period' two months before its results are scheduled to be announced. Therefore there are large periods of time throughout the course of a year when directors are prohibited from dealing - given the sensitive (inside) information regarding coming results which they have knowledge of.

In summary, directors' share transactions can be made for a whole number of reasons which do not necessarily cast a judgement on future trading prospects at the company. That said, many directors' share transactions are likely to be made out of genuine judgement on the company's future prospects.”

I'm one of the many that will benefit from the windfall from Standard Life. Now do I take the windfall or the shares?

Nearly 2.5 million members of Standard Life could shortly be receiving windfalls of anything up to £1700, assuming that the imminent vote to demutualise is agreed. Hargreaves Lansdown will be producing a free, no-nonsense report for those involved in the demutualisation who are not sure what to do next with their shares, and the report also gives a background as to how the demutualisation has arisen and what it means for the company.

In a brief, four part, report, Hargreaves Lansdown will consider

• An introduction to the demutualization. Why, when and how. Why it is important to Standard Life. What a Stock Market flotation could mean to them. Key dates and actions required for members/potential shareholders.

• Standard Life as an investment opportunity. What are the strengths, weaknesses, opportunities and threats for them? How the market views the company, and key points which individual investors may wish to consider

• Why accepting shares in nominee format may limit choice and may not be the ideal thing to do for many investors

• How to add to the windfall for those investors who wish to invest further in Standard Life – details of an efficient and simple dealing service from Hargreaves Lansdown .

If you would like a copy of this free report, which should be available within the next couple of weeks, please feel free to register your interest here .

What has happened to the Unilever share price? It seems to have jumped from around 520p to 1170p?

At its AGM on 9 May 2006 , a share consolidation was agreed and this was implemented on Monday 22 May. Previous holders of 20 ordinary 1.4p shares now have 9 ordinary 3 1/9p shares. Thus, on Monday the share price was adjusted to take this into account – at the close of business on Friday 19 May, the price was 525.5p, which was therefore adjusted to 525.5 x 20/9 = 1167.78p in time for Monday's open. Equally, holders of Unilever shares will have had their holdings amended accordingly. For example, someone who held 100 “old” shares (price 525.5p, therefore value £525.50) will now hold 100 x 9/20 shares = 45 shares (price 1167.78, value £525.50). Replacement certificates are to be posted on Friday 26 May and if not received shortly thereafter, investors should contact the Registrar, Computershare Investor Services, on 0870 703 0300.

Certain companies are only known by their initials – EMAP, EMI, HMV, WPP – are these dealing codes or do they mean something?

All quoted companies do indeed have their own (Stock Exchange) dealing codes, but the stocks mentioned here are slightly different, since they originate from historic names, sometimes unconnected with what their main line of business is today. EMAP originally stood for East Midlands Allied Press, EMI for Electric and Musical Industries, HMV for His Master's Voice and WPP (oddly) for Wire and Plastic Products – apparently Sir Martin Sorrell chose this wire basket manufacturer as his foundation company for building up the global advertising company we know today. Other founders or owners have similarly added their mark, such as the partner T E S tockwell and founder Jack Co hen (Tesco) and Sir Alan Sugar – or A lan M ichael S ugar Trad ing (Amstrad).

What is meant by the term “net asset value”?

This term is usually (but not exclusively) used in the same breath as Investment Trusts. The net asset value (NAV) is a company's total assets, less its liabilities, in relation to the number of shares in issue and is usually expressed in pence per share. For example, company A has £25m in assets, £5m in liabilities and 40m shares in issue. The NAV is therefore 25m less 5m divided by 40m = 50p per share. Investment Trusts where the share price is less than the NAV are said to be trading at a discount (or a premium if the opposite applies). This is of particular interest to value investors, who wish to know the worth of their investment – in intellectual property shares, or other “knowledge” based shares it is much less of an issue, since the “assets” for those companies are largely intellectual rather than physical.

Could you explain what ETFs are?

Exchange Traded Funds, or ETFs, are index tracking funds/shares which are listed on the London Stock Exchange in much the same way as any other share. They allow the investor to access a basket of shares – such as the FTSE100 for example – through the purchase of one investment (as opposed to 100 for the FTSE100). They therefore attract the diversification of these indices without the need for stock specific investments, and are eligible for ISAs but attract no stamp duty. There is a small annual management fee, along with the broker's commission for dealing. For further details the reader might like to visit the LSE website at www.londonstockexchange.com

I keep hearing the term “quadruple play” when TV or telecom shares are being discussed. What does this mean?

Whereas content remains king for Media companies, especially of course TV and Radio, the way this content is delivered is beginning to converge at a rapid pace. At the moment, it is not unusual for us to have different suppliers – or connections – for our TV, internet (say broadband), fixed line telephone and mobile telephone. A number of providers are now positioning themselves to being able to provide all four of these services together under one roof – the so called “quadruple play” arena. In theory, this should result in efficiency gains as providers (and indeed consumers) simply use the one “pipe”, or connection for all these services. Some people will choose not to put all their eggs in one basket or simply not wish to move from their existing provider(s) – nonetheless, this is seen as a market which will explode and some household names (BT, NTL, BSkyB) are lining up for a share of the action.

Where next for interest rates?

The next interest rate decision is due on Thursday (4 th May) and the vast majority of economists expect no change from the current rate of 4.5% - indeed, many are predicting that this rate will hold for the remainder of the year. The difficulty in calling the next move (if any) is that the available economic indicators are sending mixed signals – certainly, until recently, most economists were predicting a modest rate reduction at some point over the summer. By way of example, contrast two of the leading indicators, consumer spending and the housing market. Some indicators are implying that consumer spending is beginning to return slowly, whereas others point to the general levels of consumer debt, along with surging household bills due to jumps in oil and gas prices. In terms of the housing market, mortgage approvals seem to be ticking up, as do general house prices – but is this just a London effect, or is it countrywide? Thus, on balance, even though other economies may still be in moving upwards in interest rate terms (US, China , Japan ) it seems that the precarious balance on which the UK stands does, for the moment, suggest that the economy is stable and an interest rate move is unnecessary in the short term.

My wife and I have both sold some shares this year. I have made just over £8,900 in gains and my wife has made £7,700. Can we pool our Capital Gains Tax (CGT) exemptions and avoid paying any tax?

Unfortunately not. The CGT exemption is £8,800 per person, not £17,600 per couple. You should have transferred ownership of assets to your wife before selling the shares, so that the gains were more evenly distributed, and that would have reduced your tax. You can't actually share your exemptions after the gains have crystallised. Another point worth thinking about for future years is that shares held within an ISA (or indeed a Self Invested Personal Pension, commonly known as a SIPP) are free of Capital Gains Tax. If in any doubt as to tax treatment of shares or dividends, it would be best to consult your normal tax adviser.

I've inherited some shares from my grandmother and want to sell them, but I don't know how much she paid for them so I don't know what the CGT liability might be.

It doesn't matter what your grandmother paid for them. In your hands, the 'base cost' for CGT purposes is the probate value of the shares. Ask the solicitor who dealt with the probate to tell you what that is – any chargeable gain to you will arise when you then dispose of the shares, with your acquisition price being the probate price as above. Incidentally, the tax situation regarding the estate will have been dealt with by the executor or administrator, although we believe that CGT is not actually payable on death by the estate – as in the question above, for the full tax implications please consult your normal tax adviser.

I have found some old share certificates. How can I check whether or not they are still valid?

There are a number of ways to do this. First of all, even if the name of the companies which you have found still exist, you will need to check that the par value on the certificate (for example, ordinary 25p shares) is still the same – if the company has undergone a consolidation or bonus issue, you may have more (or less) shares than you think and, in any event, the share certificate may have been superseded. If you cannot find the name listed on the share certificate, you could contact the City Business Library – go to www.cityoflondon.gov.uk and then follow the link to “ Business City ” or telephone 020 7332 1812. Another thing you may wish to try is contacting the Registrar for the company – on the basis that there are 3 registrars who more or less cover the entire market, the chances are that you will have some success with at least one of them! The 3 registrars in question are Computershare ( www.computershare.com , telephone 0870 702 0000), Lloyds TSB Registrars ( www.lloydstsb-registrars.co.uk , telephone 0870 600 3989) and Capita ( www.capitaregistrars.com , telephone 0870 162 3100).

Can you suggest any sites that give the latest or current analysts' target prices for shares in the FTSE or Dow? This would greatly assist me in knowing when to enter or exit a share.

There are not too many such sites to my knowledge which cover target prices closely, since they are subject to change on a fairly regular basis. This being said, the site Digital Look does have a fair smattering of reasonably recent broker targets and may be worth a look, certainly for UK shares – if you try www.digitallook.com and then follow the link to (the) “Company” (in question) and then on to “Broker views” you may have some success. There are also certain updates in the Press, usually at the weekend, some of which carry target prices, such as the Telegraph on a Saturday. Finally, elsewhere on this site is a “broker recommendations” link which will give roundups along with occasional references to target prices.

Can you explain what is meant by the term “rolling settlement”?

Settlement is simply the process by which investors pay for shares they have bought and receive payment for shares they have sold. Before 1994, “account settlement” was the norm. The year would be divided up into account periods of usually two weeks, and there would be one settlement day, usually the Monday week after the end of the account period. If an investor bought and sold shares during the account, the net figure would be settled (debited or credited to the account) on account day. This system was replaced by rolling settlement, where settlement takes place a certain number of working days after the trade. The initial number was 10 days, then 5, but is currently set at 3 working days – you may have heard the expression T+3, which simply means that settlement day is T(rade date) + 3 (working days until settlement). This also means that purchases and sales cannot be directly offset against each other unless they are made on the same trading day. The only way you are likely to encounter say, T+10 these days is if you are selling shares for which you hold a certificate, since the process takes longer and could not be achieved in 3 working days – and note that some brokers charge more for settling this way.

What is a placing?

A means of raising capital for a company, either pre or post flotation. For example, when a company initially comes to the market, it can raise capital in two main ways - , either as an 'offer for sale' to the general investing public or as a “placing” of shares with institutions. Post flotation, if it needs to raise further capital, it may elect to go for a “rights issue” (see previous definition below) or, again, “place” the shares with certain larger shareholders.

The privatisation and demutualization boom of the 1980s and 1990s, where offers for sale were widespread have, in recent years, been largely replaced by placings. The accepted wisdom of this is that the cost of placings is generally lower for companies than public offerings and the speed to market is quicker. In recent times, however, some companies have realised the importance of “smaller” shareholders, especially if their customers are also likely to be their shareholders, and there are tentative signs that there may be some return to an offer for sale environment, although extremely unlikely to be of the scale seen in the 80s and 90s.

Is this a good time to buy Government or Corporate Bonds or should I wait until interest rates next peak?

Just to clarify, Government bonds (or gilts) are seen to be low risk, whereas Corporate bonds carry slightly more risk on the basis they are attached to the financial health of the company issuing them. For the purposes of this answer, I shall refer to bonds in general. Conditions in the UK bond markets remain unprecedented – there have been few times in history when opinion on the next move in UK interests has been so divided. Your question implies that you think interest rates have not yet peaked. Many economists would agree, pointing to the spectre of rising energy and commodity costs. However, just as many economists would disagree and consider that rates have already peaked, given rising UK unemployment and the lid on inflation which competition from the likes of China imposes on potential price increases. Added to this uncertainty is the massive jump in demand for bond investments which changes to UK pension rules have brought with them. It appears that UK pension funds just can't get enough long term bond investments in order to match their pension fund liabilities. Is this situation causing a temporary bubble in bond prices? No one really knows and only time will tell. Given such an uncertain background, the answer might be to drip feed any funds into the bond markets over a series of months or even years. That way you will hopefully achieve an averaging effect and mitigate any excess which could currently be driving bond markets. You could do this yourself depending on the amount of funds you have to invest or you could utilise the services of a monthly savings scheme attached to a managed bond fund.

The Chancellor mentioned REITs in the Budget and this seemed to have a positive effect on property shares. What are REITs?

Real Estate Investment Trusts, or REITs (pronounced “reets”) are already popular in other countries such as the US and Japan . REITs pool investors' assets and buy a portfolio of properties, which are then let to individuals or companies. The REITs themselves will be normal shares and so give investors access to property movements with a couple of important differences from where we are today. At present, dividends from shares in property companies have the basic rate of tax deducted, which is not reclaimable. In REITs however, whilst the basic rate will be deducted (and topped up to the higher rate if applicable) this can be reclaimed if the investment is in an ISA or a pension. For the companies themselves, they will be free from Corporation Tax providing that they distribute 90% of their profits to investors. There will be a 2% charge to switch to REIT status – both of these figures were expected to be much higher, so this news was well received and some property shares jumped 10% on the basis that they are even more likely to convert. Many other companies with a large property portfolio (such as Tesco) are known to be considering whether to switch their property to REITs. Finally, in terms of risk, you should note that REITs will be nearer to shares than to direct property, so they will be inherently higher risk.

I was previously a Marconi shareholder – could you tell me what the latest position is?

Marconi Corporation recently completed the sale of the majority of its telecommunication equipment and international services businesses to Ericsson for approximately £1.2 billion. To reflect the company's new focus as a telecoms service provider, Marconi has changed its name to Telent PLC.

Following this disposal, the company announced that it would be returning around £590 million to shareholders in the form of a Special Dividend, and also undergoing a share consolidation. The Special Dividend has been set at 275p per share and is expected to be paid to shareholders on 31 st March, to shareholders as at 24 th March. Similarly, it is expected that the share consolidation (2 new shares for every 7 previously held) will become fully effective on Monday 27 th March. By now, you should have had such confirmation from the company – if not, I would suggest you contact the Registrars (Computershare Investor Services) on 0870 702 0002.

I'm trying to find a site which lists ex-dividend dates for shares. I've been unable to find this information – can you help? – and - Is there a database or tool that summarises the ex-div dates for all companies? Is there a certain time of year where most companies would have the ex-div?

There is no particular time when ex-dividends are marked, except to mention that in February there was a raft of full year company results, at which time the full year dividend (date and amount) would normally be confirmed. In terms of a site which lists ex dividend dates, the reader(s) might like to try www.digitallook.com then go to “companies” and then “company diary”. Although these details are listed week by week, they do go a fair way into the future and so can give a very good summary of imminent dates. Beyond this, the reader(s) are probably going to need to find a subscription (or at the very least registration) site such as www.investorschronicle.co.uk or www.advfn.com

I have always wondered – what is the actual difference between “stocks” and “shares”?

It's really more of a historical distinction – strictly speaking, stocks are bonds, such as Government bonds (“gilt-edged stocks”, or gilts) whereas shares are equities, “ordinary shares of 25p”. These days the boundaries are rather more blurred, and shares are often referred to as stocks, although not vice versa. In the US , shares are probably best known as stocks, due to their descriptions, such as “common stock of no par value”.

What does the phrase “corporate actions” mean?

This is basically a term which applies to any event which affects shareholders, and one which needs to be monitored to reflect the new value of the shareholding. For example, a bonus (or scrip, or capitalisation) issue is a corporate action, where an investor receives (say) one new share for every share held – the corporate action would have the effect of doubling the investor's shareholding (and to compensate, the share price would halve in the market). Other examples of corporate actions are rights issues, stock consolidations/splits, and mergers. In broad terms, corporate actions will have one of three outcomes – (i) to alter the acquisition cost of the investor's shares for tax purposes, (ii) to alter the number of shares held (as in the scrip example above) or (iii) to alter the ratio of shares held by the investor in relation to the total number of shares in issue (such as a rights issue).

This deal was worth around £2 billion and was completed on 31 st January, with the proceeds being paid at the end of February to shareholders. Some of our clients had a similar enquiry and so we produced a very brief report with some commentary on the sector. You can view this free here.

I have had shares in Griffin Mining since the end of last year. The company looks sound – no debt – ready market for zinc – even gold in the offing – good Regulatory News Service reports – why the low price?

As you will be aware, Griffin Mining is a mining development and investment company, whose main asset is its Caijiaying zinc-gold mine in China. It is expected to reach full production levels in 2008 and a recent report in the Investors Chronicle (February 2006) stated its positives as being, amongst others, strong metal prices and the fact that production is set to increase. On the downside, it quoted the country risk in China and costs, which are running higher than anticipated. This being said, its recommendation was to buy the stock. Companies such as these tend to be more volatile and higher risk since they are mainly focussed on one site, or even activity – for exa