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| Capitalisation Issue |
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| This is the issue by a company of new shares which, because they become fully paid up immediately on issue out of the company's existing reserves, do not require any payment from the shareholders as in a rights issue. This is a method which has the effect of making the company's shares more marketable because of the increased number available and their lower market price. The practice in a capitalisation issue is to make a bonus issue to existing shareholders which is in proportion to each investor's current shareholdings. Therefore, although the number of shares held by each shareholder increases, his or her proportion of the company's capital after the scrip issue is unchanged and the value of the total holding remains much the same. |
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| Cash Management System |
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| Method of managing cash that allows it to be invested and income-producing until the day it is actually needed. Cash management oriented mutual funds are those which invest in short-term, highly liquid money market instruments. |
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| Central Bank |
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| Most countries have a central bank. Each differs a little from the others in the range of its activities, in the powers and techniques it can use, and in its relationship with its government, but all serve as bank to their country's government and to its banking system. It is through the interplay of these two roles in controlling the cost and availability of money and credit that central banks play a key part in the monetary management of an economy. In addition, many central banks are responsible for the overall stability of their country's financial system. The UK's central bank is the Bank of England. In Germany, it is the Bundesbank and in the US, the Federal Reserve System (the Fed). |
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| Central Provident Fund |
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| Compulsory pension fund in Singapore to which all employees are required to contribute. |
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| Charitable Fund |
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| A fund designed for charities recognised by the Inland Revenue to invest in. The fund may be invested in a broad spread of shares in which case it can pay out its income distributions without deduction of tax or in Government securities and other fixed interest stocks and deposits. |
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