Split decisions

Article Abstract:

United Kingdom split capital investment trusts differ from conventional trusts in issuing two or more types of stock. The trusts have a limited life, and assets are paid with different ypes of stock having different priorities. Zero dividend preference stocks are usually first in line, then income stocks, and lastly capital stocks. Returns will be affected by tax changes which affect how expenses can be offset against income, and changes to advance corporation tax.

Author: Moss, Gail

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Indirect dealings

Article Abstract:

Investment trusts and unit trusts both offere a means of purchasing professional management and spreading risk. Unit trusts that invest in investment trusts have tax advantages. Investors tend to choose unit trusts rather than investment trusts which are not as well known, though they have some advantages over unit trusts. Investors can make gains if they find undervalued investment trusts, and some unit trusts are geared to investing in such trusts.

Author: Moss, Gail

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Subjects list: United Kingdom, Personal finance, Investment companies, Mutual funds
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