Glossary

> Asset

An asset is any property with a cash value, such as real estate, equipment, savings, and investments.

> Bearer Shares

Any corporation is owned by its shareholders. In most countries, every share that is issued by a company needs to be registered with a government agency, so the government and other agencies know who owns each share in a company, and how much each share was traded for. Offshore companies generally issue bearer shares. These shares belong to the person who holds them, the bearer, and are not registered with a central authority. As such bearer shares may be bought and sold without records of who owns the share or how much was paid for the share.

> Deposit

The money you put into a bank account.

> Electronic Banking

Most banks and building societies now allow their customers to access their bank account details electronically, using a computer, interactive television, or even their mobile telephone. Electronic banking services now also encompass almost the full range of services available from a bank, including setting up payments, applying for loans and mortgages.

> Equity

Equity is the value of your home when outstanding mortgage amounts and other loans have been subtracted. Thus, if your home is valued at £100,000 and your outstanding mortgage is £75,000, you are said to have £25,000 equity in your home. Equity can be turned into cash quite easily, as many companies are willing to offer loans secured against any equity you have.

> Financial Statement

A financial statement is a written record provided by the bank which records your financial circumstances and transactions. The financial statement generally includes a record of the money entering your account, the money paid out and your current balance.

> Fixed Rate Loan

A fixed rate loan is a loan with a set rate of interest that either does not vary for the entire life of the loan or is set or ‘fixed’ for a specified period (months or years).

> Income

Your income is the total amount of money you receive from all sources, including wages, commissions, bonuses, government or retirement benefits, compensation claims, interest and dividends on all investments.

> International Business Corporation (IBC)

An IBC is a corporation that is created in a tax haven and is typically authorized to do business anywhere in the world except its home country.

> Net Income

Your Net Income is the total amount of your income minus any expenses and taxes you pay.

> Trust

A legal arrangement where control of assets is transferred to a trustee who then holds them for the benefit of a third party, the beneficiary.