Association of International Life Offices
Representing the cross-border life industry
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Glossary

Not sure about a name or phrase used in our documentation or website? Or perhaps you’ve come across some financial terminology elsewhere that you’re not familiar with? Find out its meaning in our glossary below and if there is a word not in there you think needs adding please do contact us.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Bare Trust (UK-Specific)

A trust for the exclusive benefit of one or more beneficiaries in specified shares. The beneficiaries become entitled to their share of the trust property on reaching age 18.

Beneficiary

A person or organisation who may benefit from a will, intestacy or a trust.

Beta

Beta (or the 'beta coefficient') is a way to measure the relative riskiness of a share.

Blue-Chip Stock

Stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector and is more often than not a household name. While dividend payments are not absolutely necessary for a stock to be considered a blue-chip, most blue-chips have a record of paying stable or rising dividends for years, if not decades. The term is believed to have been derived from poker, where blue chips are the most expensive chips.

Bond

A bond is a type of IOU issued by a government, local authority or company to raise money.

Bond yields

An investor buying a bond needs to know what return to expect.