Jargon Buster

W

Whole Life Policy
A life insurance policy which pays a specified amount on the death of the life assured.

Winding Up
The legal termination of a pension scheme.

With Profits Policy
A life insurance or pension policy which has annual bonuses added to the sum insured.

Working Capital
The amount of money tied up in the day to day operations of the business.

Work-out solutions
An informal reorganisation of the business and settlement of its affairs outside of formal insolvency proceedings.

X

XD - Ex-Dividend
The interval between the announcement and payment of the next dividend or, in the case of a unit trust, the next income distribution.

Y

Yield
The annual dividend or income from an investment.

Z

Zero Rated
Goods or services that are taxable for VAT but with a tax rate of zero.