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Absolute Return Funds
Absolute Return Funds (including Hedge Funds) aim to deliver returns in both rising and falling markets. The investment techniques adopted may be different to methods employed by traditional fund managers as the funds have greater scope to use derivatives, short positions, and exotic securities.

Adjusted Taxable Income
This is relevant to the applicability of the superannuation surcharge. A person who has Adjusted Taxable Income greater than $94,691 for the 2003/2004 financial year will begin to be affected by the surcharge tax. A simplistic definition of Adjusted Taxable Income is taxable income from your tax return plus employer contributions, salary sacrifice contributions, tax deductible member contributions plus certain components of employer ETPs (eligible termination payments) plus taxable fringe benefits Refer below for the definition of 'surcharge'.

AFMA
Australian Financial Markets Association (AFMA) is the national industry body representing the nearly 200 organisations that participate in the Australian over-the-counter (OTC) wholesale financial markets.

All Ordinaries (ALL Ords)
Measures the level of share prices at any given time for a sample of major companies listed on ASX to determine the overall performance of the share market. Stock exchanges in other countries have similar indices, e.g. Dow Jones Index (New York), FTSE (London) and Nikkei Dow (Tokyo)

Annual Report
In the context of the Australian share market, the annual report is a financial report or statement issued by a publicly listed company to its shareholders. The annual report contains profit and loss statements, balance sheet and a statement of cash flow, as well as notice of the Annual General Meeting (AGM) and business resolutions to be discussed.

Annuity
An annuity is an income stream (similar to a pension) provided by Insurance Companies and Friendly Societies. There are different types of annuities such as a rollover immediate annuity, allocated annuity, and ordinary immediate annuity.

APRA (Australian Prudential Regulation Authority)
This is the new government agency, which came into effect from 1 July 1998 whose main responsibilities are to provide prudential regulation for deposit taking institutions, life and general insurance companies and superannuation funds. It has taken over some of the responsibilities previously handled by the Insurance and Superannuation Commission (ISC)

Approved Deposit Fund
This is a type of superannuation fund.

ASIC
Acronym for Australian Securities and Investments Commission, the government body responsible for regulating companies, the issue of sale of shares and trust units and company borrowings, and investment advisers and dealers, in accordance with the Corporations Law.

Asset Allocation
The proportion of your total capital you invest in the different asset classes. This will be largely determined by your risk profile.

Asset Backing
Useful check for investors that can be related to the firm's earning capacity.
Asset backing = Net assets of a company (in $) / Number of issued shares.
For example: XYZ Ltd with $100,000 net assets and 10,000 shares issued has an Asset Backing of $10.00 per share.

Assets and Income Test
A person's entitlement to the Government's Age Pension is based on the "Assets" and "Income" Test. The level of their assets and/or income as determined by these tests will determine the amount of pension they will be entitled to.

ASX
Australian Stock Exchange Ltd (ASX) is the market when HOLST transacts business in Australian Securities.

At Limit
An order that places a limit on either the highest price that may be paid for shares or the lowest price that may be accepted for sale.

At Market
Type of order by an investor to buy or sell shares at the market price at the time the order is given. Similar to 'at best' which is an order to buy or sell at a price to be determined at the adviser's discretion.

Authorised Capital
The amount of share capital which a company is permitted to issue. Also called nominal capital. See Issued Capital, Uncalled Capital, and Paid-up Capital.

AWOTE
(Average Weekly Ordinary Time Earnings). This figure is used to index certain thresholds for tax purposes.

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BBSW
The Bank Bill Swap rate published by AFMA.

Bear Market
When share prices are falling quite sharply and experts expect further falls

Beneficiary
This is a person who is entitled to receive benefits from a superannuation fund. It may be a member of the fund, dependant, executor upon death or some other person.

Bid
The price at which someone is prepared to buy shares.

Blue Chip
Shares, usually highly valued, in a major company known for its ability to make profits in good times or in bad, and with reduced risk or default.

Bonus Shares/Bonus Issue
Additional shares issued by the company to existing shareholders for free, usually in a pre-determined ratio to the number of shares already held.

Brokerage
Fee paid to stockbroking firms for buying or selling shares

Bull Market
When share prices are generally rising

Business Cycle
Also known as the economic cycle. The rise and fall of the economy, from a peak, or boom, to a trough (sometimes called a depression) and back to a peak. The length and duration of each phase is not predictable.

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Call Option
An option contract which gives the holder the right, but not the obligation, to buy the underlying asset at the exercise price at or before a fixed expiry date.

Capital
Funding for investment in capital assets or to operate a business. Also refers to the value of an investment in a business, or in assets such as property or shares.

Capital Gains Tax
This tax applies to the gain arising from the disposal of most assets (excluding the principle residential home) acquired after 19 September 1985.

CGT (Capital Gains Tax) exempt component
This is the part of your benefit arising from a capital gain re the sale of your business, which is exempt from tax, because it has been used for retirement purposes.

CHESS
ASX's Clearing House Electronic Sub-register System which provides the central register for electronic transfer of share of ownership.

Commutation
This term refers to withdrawing a lump sum from a pension/annuity.

Company Report
Under Corporations Law, a listed company must provide a range of reports. These include half yearly reports, preliminary final reports as well as annual reports.

Complying Pension/Annuity
This is a specific type of pensions/annuities that have specific features allowing a person to opt for the higher pension RBL (Reasonable Benefit Limit). Refer RBL definition for further explanation.

Concessional Component
This is a component of an ETP comprised of either bonafide redundancy, invalidity of approved early retirement payments issued prior to 1 July 1994.

Contract Note
A written document confirming a transaction between two dealers or a broker and a client which details the costs, type and quantity of shares traded.

Contributing Share
Shares that have been partly paid for. At a future date the shareholder will be required to pay the balance outstanding, unless the company is a no liability company in which case shares can be forfeited instead.

Contribution Tax
This refers to the 15% tax that applies to tax deductible employer and/or member contributions. The 15% tax also applies to ETPs (eligible termination payments) rolled over from an employer or unfunded superannuation funds (referred to as untaxed ETPs).

Convertible Note
A loan made to a company at a fixed rate of interest with the right to be either redeemed (i.e. repaid by the company) for cash or converted into ordinary shares at a predetermined date or within a certain period.

Corporate Action
A corporate action is an action taken by an entity for the purpose of giving an Entitlement to Holders of a class of the entity's securities. Examples of Corporate Actions include rights issues, bonus issues, dividends or other payments, or offers under a buy- back scheme.

Coupons
An interest payment that occurs one, two or four times a year.

Current Ratio
A measure of liquidity that shows a company's ability to pay its short-term debts.
Current Ratio = (Current assets / Current liabilities) = Number of times covered

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Debenture
A loan to a company at a fixed rate of interest and for a fixed term, usually one to five years. The debenture is secured by a trust deed over an asset, or assets, of a company.

Debt / Equity Ratio
Shows the relationship between funds provided by borrowing and funds provided by shareholders. The debt/equity ratio shows to what extent a company is financed by debt (also called the gearing or leverage ratio).
Debt/Equity ratio = (total debt / shareholder equity) x 100

Deductible Amount
This is the tax-free part of an annuity or pension. For annuities/pensions that commenced after 1 July 1994 the deductible amount is comprised of undeducted contributions. For these purposes the term undeducted contributions would include spouse contributions and any CGT exempt component. For pensions that began prior to this date the calculation is different.

Deferred
Shares with the notation 'd' are the result of a reconstruction of the company's share capital.

Deferred Annuity
An annuity purchased by way of a rollover where the annuity payments are deferred until a later date.

Delivery Not Enforceable
Shares quoted as 'del' are the result of a new issue for which CHESS statements have not yet been issued.

Delta
A measure indicating the sensitivity of an option's or warrant's price to price movement in the underlying asset. A measure of the rate of change in an option or warrant's theoretical value for a one-unit change in the price of the underlying asset.

Dependant
A dependant for tax purposes generally includes a spouse, defacto spouse, child under 18 years of age or any other person who is financially dependent on the deceased. For superannuation purposes (i.e. the definition contained in most trust deeds) it refers to a spouse, children of any age and financial dependants.

Derivative
A derivative is an instrument that derives its value from that of an underlying instrument (such as shares, share price indices, fixed interest securities, commodities, currencies etc). Warrants and exchange traded options are types of derivatives.

Diversification
Spreading investments over a variety of investment categories in order to reduce risk. You may also invest in different countries spread your risk.

Dividend
Distribution of part of a company's net profit to shareholders. Usually expressed as a number of cents per share.

Dividend Cover
A ratio showing the number of times a company's dividend is covered by its net profit.
Dividend Cover ratio = (Net profit / Dividend paid)
A low dividend cover points to a company paying out most of their net profit, while a high cover suggests much of the profit is being retained.

Dividend Imputation
This refers to the tax credit of 30 cents per dollar an individual receives in their tax return for tax the company paying the dividend has paid. This removes any double taxation of company dividends. (i.e. profits taxed in the company's hands and then taxed as dividends in the individual's hands).

Dividend Rate
The dividend shown as cents per share.

Dividend Reinvestment Plan (DRP)
An alternative to cash dividends, allowing shareholders to receive new shares instead of cash. These shares are often issued at a discount and no brokerage or stamp duty is paid.

Dividend Yield
The dividend shown as a percentage of the last sale price for the shares.

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Earnings Before Interest and Tax (EBIT)
A key measure of the financial performance of a company. It is similar to net profit, except that the effects of tax benefits, deductions and loans are factored out, providing a better measure of companies underlying performance.

Earnings per Share (EPS)
Measures the earnings that are attributed to each equivalent ordinary share over a twelve month period. It is calculated by dividing the company's earnings by the number of shares on issue in accordance with AASB 1027 'Earnings per share'.

Eligible Service Period
This is the years/months of service with an employer and/or superannuation fund used to calculate the pre 1 July 1983 and post 30 June 1983 components. Refer pre 1 July 1983 and post 30 June 1983 component.

Eligible Termination Payment (ETP)
This term generally refers to a lump sum payment from an employer, superannuation fund, approved deposit fund or deferred annuity. It also covers lump sum payments arising from a commutation of an annuity/pension and a withdrawal from a rollover fund. Lump Sum Payments of Long Service and Annual Leave are not usually classified as ETPs and are subject to their own tax rules.

Equities
In share market terms, equities is a synonym for shares and represents part-ownership of a company, as distinct from debt securities such as bonds and debentures.
From a business perspective, equities represent the total interests of parties in the assets of that business entity. Lenders and creditors have a 'specific entity', and owners have 'residual' entity.

Employer Payment/ETP
Refer Ex-gratia Payment

Ex Date
The date on which shares change from being quoted "cum" to "ex". It is usually the fourth business day prior to the record date.

Ex-Dividend
Ex Dividend means:>BR> 1. Securities quoted Ex Divided on a Trading Day prescribed by the Exchange: and
2. designated as "XD" on SEATS.

Excessive Component/Benefit
This is the amount of an ETP in excess of the Reasonable Benefit Limits. The Lump Sum Limit for the 2003/2004 financial year is $588,056 and the Pension Limit is $1,176,106.

Exgratia Payment/ETP
This is also referred to as an employer payment/ETP, untaxed payment or golden handshake payment. It is an ETP made by an employer to an employee on retirement/resignation.

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Face Value
The initial raising of capital by public subscription to securities, such as shares offered on the share market for the first time.

FICS
Finance Industry Complaints Service Ltd (FICS) is an alternative disputes resolution service to which all clients of HOLST can appeal to if HOLST is unable to resolve the complaint to the client's satisfaction.

Franked Dividend
A dividend paid by a company out of profits on which the company has already paid tax. The investor is entitled to an imputation credit, or reduction in the amount of income tax that must be paid, up to the amount of tax already paid by the company. These dividends carry a tax credit of 30%.

Franking Rate
The company tax rate at which the dividend is franked.

Fundamental Analysis
Method of analysis using ratios and percentages calculated from financial data of a company to assess the company's quantitative and qualitative aspects. Ratios of particular industry groups and /or major competitors may also be included in the analysis to determine it's suitability for investment.

"Funded" Superannuation Fund
This is a fund where the employer contributes regularly and tax applies to the contributions and investment income earned within the fund at up to 15%.

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Gearing
Refers to the process of increasing funds available for investment through borrowing. the ratio of debt finance to equity finance or as: The use of long-term debt in financing an entity. Gearing may be measured as EBIT /EBIT - Interest . Used to be known as Leverage.

Golden Handshake
This is the same as an Exgratia payment or employer ETP.

Goodwill
The future benefits from unidentifiable assets which are carried as intangible assets of an entity. Goodwill reflect the entity's ability to earn more than a normal rate of return on its physical assets. Goodwill can arise from a number of causes. It is usually recognised in the accounts only when it is acquired through specific purchase. In this situation, it is calculated as the excess of cost of the acquired entity over the current or fair market value of the net tangible assets acquired.

Government Bond
A debt security issued by the government. Interest is usually paid twice yearly at a fixed rate for the life of the bond, usually 10 years.

GST
GST means the goods and services tax system under the A new tax System (Goods and Services tax) Act 1999 (Cth) and related legislation passed by the Federal Government.

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Hedge
A transaction which reduces or offsets the risk of a current holding.

Hedge Funds
See Absolute Return Funds.

Highest Average Salary
This was used in calculating (Reasonable Benefit Limits) RBLs prior to 1 July 1994. It is the average of the highest salary over any 3 consecutive years.

HIN
Your stockbroking firm allocates a Holder Identification Number when you buy shares if you nominate them as your sponsor in CHESS.

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Imputation Credits
The tax credits passed on to a shareholder who receives a franked dividend. Under provisions of the Income Tax Assessment Act, imputation credits entitle investors to a rebate for tax already paid by an Australian company. See Dividend Imputation.

In-The-Money
When the exercise price of a call (put) option or warrant is below (above) the current market price of the underlying asset.

Income Splitting
This term is used to describe the division of an income flow between 2 or more people.

Index
A measure of a change in value of underlying securities. For example the All Ordinaries Index.

Insurance and Superannuation Commission (ISC)
The Commonwealth Government Body which had the primary responsibility for regulating the superannuation and insurance industries until 1 July 1998. Since 1 July 1998 the ISC's responsibilities have been largely incorporated into APRA (Australian Prudential Regulation Authority).

Intangible Assets
Non-physical assets giving an entity future economic benefits arising from some exclusive, preferred, or protected position, e.g. franchises, goodwill, patents, or trademarks.

Interest Cover
A ratio that shows the number of times interest payments are covered by earnings before interest and tax (EBIT). The higher the interest cover, the greater the company's ability to meet interest payments.

Interest Cover = Earnings Before Interest and Tax (EBIT) / Net Interest Payments = number of times covered

Invalidity Benefit/Component
This is a payment in respect of invalidity paid by either a superannuation fund or employer.

IRM
The ASX Interest Rate Market, where it is possible to buy and sell Interest Rate products.

Issued Capital
The value of securities allotted in a company to its shareholders and debtholders. Where debt has been issued the issued share capital is shown separately. Contrast Authorised Capital, Issued Shares and Paid-up Capital.

Issued Shares
The shares of a company that have been allotted to shareholders. Compare Authorised Capital. Contrast Issued Capital.

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Joint Venture
An association of persons to jointly explore, finance or direct a particular development with a view to mutual profit. May be in various forms, that is, 50/50, 75/25 with the right to increase to 60/40 etc.

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Leverage
See Gearing.

Life Annuity
This is a product usually from a life insurance company purchased with either ETP monies or non ETP monies which provides a set regular income stream guaranteed for life.

Limit Order
An instruction to a broker to buy or sell a security at a given price or better.

Liquid Assets
Assets which you can easily convert into cash, such as shares or fixed interest investments.

Liquidity
Being able to convert assets into cash easily, quickly and with little or no loss of capital. A liquid market is a market with enough participants to make buying and selling easy.

Listed Company
A company which has agreed to abide by ASX Listing Rules so that its shares can be bought and sold on ASX.

Lump Sum Tax
This is referred to the applicable tax when an ETP is taken in cash. The taxation of an ETP is dependent on its component and the following will determine what the components are:

• The recipient age when the ETP is taken.
• The date the person commenced service or started contributing into a superannuation fund or the date commenced with an employer.
• Whether it is an employer ETP, unfunded/funded superannuation ETP, death benefit ETP.
• Whether the benefit is in excess of the RBLs.

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Market Capitalisation
The total number of shares on issue multiplied by their market price. This can be applied to work out the market value of one company or of the value of all companies listed on the exchange.

Market Order
An investor's order to a broker to buy or sell at the current market, irrespective of price.

Market Price
The prevailing price of shares traded on ASX. May be the last price at which the shares traded, or the most recent price offered of bid for the shares.

Market Risk
The risk of a general decline in the market.

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Net Asset Value (NAV)
NAV of an investment fund refers to the total value of the fund's underlying investment portfolio, less any fees, charges, expenses and other liabilities accrued by the fund.

Net Profit
The excess of all revenues and gains for a period over all expenses and losses of the period.

New
Recently issued shares quoted as 'new' when they do not rank equally with existing shares in terms of dividends.

Net Tangible Assets (NTA)
An indication of what each share in a company is worth if all the assets were liquidated, all the debts were paid and the residual was distributed to the ordinary shareholders on a per share basis.

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Offer
The price at which someone is prepared to sell shares.

Off-market Transfer
The transfer of shares between parties without using a stockbroking firm as the intermediary. Off-market transfers are executed through the use of an 'Australian Standard Transfer Form'.

Option
An option is a contract between two parties giving the taker (buyer) the right, but not the obligation, to buy or sell an underlying asset at a particular price on or before a particular date.

Out-of-the-Money
A call (put) option or warrant is out-of-the-money when the current market price of the underlying asset is below (above) the exercise price.

Owners' Equity
The interest of shareholders or other owners in the assets of an entity. At any time, it is the cumulative net result of past transactions and other events and circumstances affecting the entity. In financial statements, owners' equity is shown as the recorded accountability of an entity to its owners. The characteristics of owner's equity are:

• it is a general interest in an entity's assets, not a claim to specific assets
• its amount is affected by the entity's operations and other events as well as by owners' investments in the entity and the entity's distributions to owners
• it is the interest that, perhaps in varying degrees, bears the ultimate risks of entity failure and reaps the ultimate rewards of entity success.

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Paid-up Capital
The amount paid by shareholders or recorded as paid on issued shares. It is calculated by deducting from the balance in the authorised capital account, the totals for unallotted shares, uncalled capital, and calls in arrears.

Partly Paid Shares
Also known as Contributing Shares.
Shares which have been issued with only part of their value paid, for example shares may be issued with a par value of $1.00, of which only 50 cents has been paid, with a further 50 cents still owing.

Pension RBL
See Reasonable Benefit Limits (RBL).

Pension Valuation Factor
These factors are used to determine the minimum and maximum payments that can be received from an allocated pension.

Post 30 June 1983 component
This is the part of an ETP that relates to service/fund membership post 30 June 1983. The post 30 June 1983 component will usually be calculated as the Total ETP less other relevant components (e.g. undeducted contributions, excessive components, pre 1 July 1983 component etc.)

Pre 1 July 1983 component
This is the part of an ETP that relates to service/fund membership prior to 1 July 1983.

Preference Shares
Shares that rank before ordinary shares in the event of liquidation of the issuing company and that usually receive a fixed rate of return.

Preserved Benefit
This is the part of a superannuation benefit, which cannot generally be cashed until the person has reached the preservation age and retired permanently from the workforce.

Preservation Age
For individuals born prior to July 1960 the preservation age is age 55. For individuals born after this date the preservation age is determined by the year of birth according to the table below:

Born	Preservation Age
Before July 1960	55
July 1960 - June 1961	56
July 1961 - June 1962	57
July 1962 - June 1963	58
July 1963 - June 1964	59
After June 1964	60

Price-Earnings Ratio (PER)
Shows the number of times the price covers the earnings per share over a twelve month period. Investors commonly use this ratio to measure the attractiveness of particular shares and to compare shares in one company with those in another.

Price Range for Day
The highest and lowest price at which a share traded over the course of the day.

Prospectus
The document issued by a company or fund setting out the terms of its public equity issue or debt raising. This provides the background and financial and management status of the company or fund, subject to the requirements of the ASX Listing Rules and the Corporations Law.

Put Option
An option contract which gives the holder the right, but not the obligation, to sell the underlying asset at the exercise price. In the case of American exercise options, this right may be exercised at any time up to expiry; in the case of European exercise options, this right may only be exercised at expiry.

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Quick Assets
Cash and bank deposits, and assets that are readily convertible into cash, such as current marketable securities, and current receivables. Also called liquid assets or current assets.

Quick Ratio
Also called the Acid Test.
In analysing shares as investments, the quick ratio is calculated to show the company's ability to pay short-term debts using only those assets that can quickly be converted to cash. Shows company's position assuming inventories cannot be liquidated and assuming the overdraft cannot be repaid immediately.

Quick Ratio = (Current assets - Inventories) / (Current Liabilities - Overdraft) = number of times covered

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Reasonable Benefit Limits (RBLs)
These limits are the maximum amount that can be received from superannuation payments and employer ETPs and will be taxed concessionally. Any amounts in excess of these limits are taxed at 47% (plus Medicare). Generally these limits apply to benefits received since 15 February 1990.

The Reasonable Benefit Limits for the 2003/2004 financial year are:

• Lump Sum $588,056
• Pension $1,176,106

These limits are indexed each year. Some individuals have RBLs higher than the other limits known as Transitional RBLs.

In order to be eligible for the higher pension RBL, at least 50% of the person's total retirement payments (either from an employer or superannuation funds) must be in the form of complying pension/annuity. A complying pension is generally one paid for life and which must contain certain other criteria.

Rebateable Pension/Annuity
The portion of a pension/annuity that is eligible to receive a 15% tax rebate.

Regulated Fund
A Trustee of a fund must lodge an election notice with APRA to become a regulated fund. This allows a fund to obtain concessional tax treatment provided government legislation is complied with.

Residual Capital Value
This is a lump sum benefit payable at the end of the annuity contract or upon death of the annuitant.

Restricted Non-Preserved Benefit
This is a portion of a superannuation benefit, which can only be paid to the member in certain circumstances on termination of employment with an employer who had contributed to the fund in relation to the member.

Return on Assets (ROA)
In analysing shares as investments, return on assets is calculated to show how much profit a company is making on the assets used in its business.
Return on assets = (Earnings before interest & tax / Total assets) x100 = %.

Return on Equity (ROE)
In analysing shares as investments, return on equity is calculated to show the return the company has made for shareholders on their investment. Shareholders' equity normally excludes intangible assets such as goodwill and is calculated by deducting total liabilities and intangibles from total assets.
Return on equity = (After-tax profits / Shareholders' equity) x100 = %.

Return on Investment (ROI)
What you earn from your investments, including dividends, interest or other income and realised capital gains. Return is usually expressed as a percentage of the amount invested.

Return on Sales
In analysing shares as investments, return on sales is calculated to show how much profit a company is making on its operations as a percentage of its sales. (Also referred to as the profit margin)
Return on sales = (Earnings before interest & tax / Sales revenue) x100 = %.

Reversionary Annuitant
This is the person that will continue to receive the annuity on the death of the original annuitant.

Reweighting
This means changing the weight or percentage of the total portfolio which each investment represents. For example, an investor may invest their money equally in shares in four different companies. If the price of one share rises significantly more than the rest, the value of that share becomes much more that one quarter of the value of the whole portfolio. The investor may choose to reweight their portfolio by selling some shares in that company and reinvesting that money in a different company.

Rights Issue
A privilege granted to shareholders to buy new shares in the same company, usually below the prevailing market price.

Rollover Fund
This is a superannuation fund into which ETPs can be rolled over.

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SEATS
This is the Stock Exchange's Automated Trading System provided for the trading of Securities on ASX.

Secondary Market
The secondary market refers to the trading of a share or a warrant (see warrants) on the ASX trading system SEATS after the primary issue by a company or a warrant issuer. For example, after a company has listed on ASX and issued shares to investors, the shares can then be sold to other investors on the sharemarket. Although it is referred to as the secondary market function of the sharemarket, the daily trading of shares in listed companies (see listed company) is the main activity of the sharemarket.

Securities
A general term applied to all shares, debentures, notes, bills, government and semi-government bonds etc.

Shareholders' Funds (Equity)
See Owners' Equity.

Spouse Contribution
Spouse contributions are contributions made into a superannuation fund on behalf of a spouse.

SRN
A Security-holder Reference Number is allocated to you when you buy shares in a company and nominate that company as your sponsor on a share subregister

Stamp Duty
Duty payable to State Governments on share transactions.

Surcharge Surchargeable Contributions
Surchargeable contributions are those that the surcharge tax is levied on and includes:

• Taxable employer contributions.
• Tax deductible member contributions.
• The post 20 August 1996 component of employer ETPs that have been rolled over to a superannuation provider since 1 July 1997.
• The post 20 August 1996 component of employer ETPs paid in cash since 20 August 1996.

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Tax Deferred
A tax concession usually found in Property Trusts or Infrastructure Funds where investors do not pay tax on the income (or distributions) they receive until they sell the security.

Technical Analysis
Method used to identify investment opportunities through the study of price action. A chart representing past price movements, is the principle tool used to identify trends on which analysts can base their future predictions.

Term Certain Annuity
An annuity which is for a specified term.

Trading Halt
Defined in the Listing Rules for the purposes of Chapter 2 of the Listing Rules as an interruption to trading at the request of an entity that is not a suspension from quotation.

Trustee
All superannuation funds require a trustee. A trustee can be a company with trustee directors or individuals. The trustee's responsibilities (with respect to a superannuation fund) include ensuring the fund's money is invested appropriately and the rules and regulations contained in the trust deed are adhered to.

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Uncalled Capital
The total amount of capital that as yet has not been called up by the directors on the shares which are currently issued.

Undeducted Contributions
These are contributions made from after tax salary for which no tax deduction has been made.

Undeducted Purchase Price
This is used to determine the deductible or tax-free portion of pension or annuities. For pensions and annuities commenced post 1 July 1994 the undeducted purchase price can comprise undeducted contributions, spouse contributions and a CGT exempt component.

Underwriter
An underwriter guarantees to the company that the funds sought will be raised and any shortfall will be taken up by the underwriter and the funds will be available at a specific time.

Unfunded Payment
This refers to ETPs from a source that has not paid the 15% earnings tax e.g. employer payments or public sector funds.

Unlisted Companies
Any company that is not listed on a stock exchange.

Unrestricted Non-Preserved Benefit
This is the part of superannuation ETP that can be taken in cash at any time.

Unsecured Notes
A loan made to a company for a fixed period of time at a fixed rate of interest. They are issued mainly, but not only, by finance companies for between three months and three years. They offer a higher rate of interest than a debenture of the same maturity, but do not have the same security as a debenture.

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Volatility
Measure of the amount of fluctuation in price of the underlying security calculated using the standard deviation of average daily price change.

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Warrant Issuer
The ASX approved financial institution that issues the warrant.

Warrants
A warrant is a financial instrument issued by an ASX approved financial institution, which is quoted on the Australian Stock Exchange (ASX)'s equity market SEATS. Warrants may be issued over securities such as shares in a company, a currency, an index or a commodity or a Listed Managed Investment.

Working Capital
Comprises current assets less current liabilities. A measure of the long-term investment required to finance the day-to-day operations at a given level of activity.

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Yield
The return earned on an investment taking into account the annual income and its present capital value.