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In the money
Warrants or options with an exercise price lower than the market price.
Income Fund
A fund that concentrates on buying stocks that pay high dividends.
Income Tax
The tax payable on your income, including dividends relating to your shareholdings.
Index
The calculation of a sample of prices used to measure the movement of a market or a market sector.
Individual Savings Accounts
These are tax-efficient Individual Savings Accounts, introduced on 6th April 1999 as a successor to PEPs. Such accounts are free of both capital gains tax and income tax. Any investor over 18 who is resident, or ordinarily resident, in the UK for tax purposes can invest up to £7,000 every tax year until 2006 into a Maxi Equity ISA and £3,000 into a Mini Equity ISA. These replace PEPs, which can no longer be subscribed to, but are still free of CGT. The management of PEPs and ISAs can be transferred to different Plan Managers without losing their tax advantages.
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