Tag Archives : Shareholder rights

Who Does The Money In Your Investment Account Belong To – Beaufort Securities

In private investor circles, the main talking point this year has been the scandal surrounding Beaufort Securities. It has left many investors asking the question “who does the money in my investment account really belong to?” Background to the Beaufort Securities Scandal On 2 March 2018, the Financial Conduct Authority (FCA) declared Beaufort Securities Limited (BSL) and sister company Beaufort Asset Clearing Services Limited (BACSL) insolvent. Following this, PricewaterhouseCoopers (PwC) were appointed as administrators. PwC have estimated that it’s fees for administration would be in the region of £50million to £100 million. This amount is truly astonishing. But that is not the scandal here. The scandal is that PwC want […]

Investors Need To Understand Accounting – Warren Buffets 1982 Shareholder Letter

It seems that most investors today are oblivious as to the language of accounting. They would rather look at headline figures presented in financial media than actually dig through an annual report. Even famed investor Terry Smith once mentioned that analyst – the people that are paid to scrutinise a companies performance – don’t usually read a full set of accounts. But if you want to be an investor in individual stocks, it imperative that you learn the language of accounting. The accounts give you the clearest picture of a business and where it is headed. The accounts can show you weather a companies earnings are real or if they […]

How Would Labour Nationalise National Grid, Energy, Rail, Mail and Water Industries. 1

Election 2017 fever is in full swing. Over the past week, all the major parties have released their manifestos. The manifesto which has caught the eye of most people is that of Labours with its radical plan of borrowing heavily to spend on welfare and pre-existing infrastructure. They key word here being pre-existing as Labour want to nationalise the National Grid along with the energy, rail, mail and water industries. Now I wouldn’t mind a government borrowing to invest in new insfustructure but in this case Labour wants to borrow to buy out infrastructure that already exists. But I digress and that is a topic for another day. In this […]

Watch This If You Hate Activist Investing

Activist Investors. You either love them or you hate them. I have always been one of those people that hated these types of investors as they want control over a company. I have had this idea that activist investors were value destroying for long term shareholders. But this all changed when I watched a recent interview of Carl Icahn which was recorded at the 2015 deal book conference. Icahn is one of those people that whom have a negative perception amongst many investors. Heck even I thought he was the ‘bad guy’. But after watching this youtube clip, I can say that I am now a fan. Icahn talks about […]

Tax on UK and Foreign Dividend Income 9

How dividends are tax for UK residents can be a tricky subject for many, but here I will explain how both UK and Foreign dividends are treated for different tax bands. This post relates to the old dividend tax rules that involved a tax credit. For the new tax rules on Uk dividends which took effect on 6 April 2016, see the following post: http://moneygrower.co.uk/2016/04/the-new-dividend-tax-rules-5000-tax-free-dividend-tax-credits/ If you want to see the dividend withholding rates deducted by different countries, have a look at this post. UK Dividends Many people have the assumption that when dividends are paid, tax is already deducted and you will not have to pay any more taxes. […]

What Are The Different Types Of Share Classes? And Why They Are Important For You!

Many people who buy shares don’t know what class of shares there are buying. Not all shares are the same and some shares may be better for you than others depending on your personal circumstances. When buying shares, it is imperative that you know what share class you are buying into in-order not to get any nasty surprises later. This article will help to identify different share classes and give a brief overview of their characteristics. 1) Ordinary Shares These are the most common class of shares. Dividends on shares depend on profits. They grant right to vote at shareholder meetings. They have a claim to share of surplus assets […]

What happens when a company you have invested in goes bust ? 2

Ever wonder what happens to your equity once a company you have invested in (whether a private company or one listed on the stock exchange) goes into administration. The first question that will come to most peoples minds is whether or not I will get the money I have invested back? In order to answer this question we first need to see why a company becomes insolvent. A company becomes insolvent when it can no longer meet its finical obligations. There are 2 main tests for insolvency which are: Solvency Test – when the company’s assets are less than its liabilities. Liquidity Test – when a company’s liabilities cannot be […]