Financial Dictionary.

This is a browseable and searchable reference tool for terminology relating to UK-based personal finance and financial products.

You can browse alphabetically, or search for a specific term.

A B C D E F G H I J L M N O P Q R S T U V W Z

Bid / Offer Spread

Definition: Until recently, funds generally had two prices - a buying price (Offer Price) and a selling price (Bid Price). The difference between the two values is known as the 'spread', which was usually about 5%, but can be lower of higher. Effectively, this is an additional charge imposed by fund managers, to cover costs such as administration, commission and dealing costs. Therefore, the effects of the spread needs to be overcome by investment growth before the units are truly growing in value. This effect is known as the Reduction in Yield. Recently, insurance funds and OEICs have introduced the concept of a single-priced charging structure, at which there is a single price for the buying and selling of units, with the only charge being an Annual Management Charge (although many OEIC managers levy an initial entry charge upon new investments).

Recent Financial Topics

A failure to make the most of female talent means that, at a minimum, we are leaving economic growth on the table and missing out on innovation at a moment we can ill-afford it.

The costly war waged on women: RUTH SUNDERLAND says populist economics will harm us all
27/10/2025 10:48 AM

The buy now pay later firm known for allowing shoppers to split the cost of online purchases, will now cater to customers wanting to spend their own money.

Klarna launches debit cards for British shoppers - and one costs £44.99 a month: What are the perks?
27/10/2025 10:37 AM

We pick our five favourite cash Isas for savers. This is essential reading to help you choose a top savings account for your money that can also protect you from tax.

Best cash Isa rates 2025: Our pick of the five top deals
27/10/2025 10:34 AM

Financial Dictionary. (function() { var po = document.createElement('script'); po.type = 'text/javascript'; po.async = true; po.src = 'https://apis.google.com/js/plusone.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(po, s); })();

Recent Financial Topics

Financial Dictionary.