London - Seeking that Pot of Gold
It’s soon pantomime time and as we all know Dick Whittington went to the City of London because he thought the streets were paved with gold.
The City of London
Now what has this got to do with The City, and money and big business? Well, just about everything. Because many people come to London and work in The City to seek that pot of gold.
Boots to Quake In
But what happens when everything goes pear shaped? When markets tumble and the rumble of shares crashing reverberates around the City and beyond? When banks get the jitters and stop lending money? And what happens when, seemingly, it happens within a matter of a few hours?
How to Buy a Bank!
Right in the middle of all the woe, when you’d think there wasn’t a penny left in any one’s piggybank, Royal Bank of Scotland, together with a consortium of banks paid nearly 74 billion euro for one of Europe’s largest banks, the Dutch bank, ABN. To illustrate how much money is actually sloshing about, a relatively small bank, Fortis Bank, which was part of this consortium contributed around 13.2 billion euro to the purchase price. Some small bank - that’s about £9 billion!
The Bank of England
We can always rely on The City. After all, it is the centre of the financial world; and in the middle of it all, The Bank of England, which proved, quite literally and very recently, it does stand by its promise to pay.
Not something you find in the garden! This is a specialist, high risk fund which uses advanced investment financial techniques in order to make maximum gains. Not a simple way to invest.
An agent who handles orders to buy and sell from its investors or clients. Brokers often charge a commission for the work they perform “the trade”. Brokers are often a member of the London Stock Exchange and regulated by the Financial Services Authority (FSA).
Actually does the buying and selling of stocks and shares. A trader can be doing the trades for him or her self, or on behalf of banks.
A group of people, companies or banking institutions that club together for a common purpose. They usually do this because when the amount they have to invest is so large, it’s better to divide it up - and spread the risk!
A term used to describe the takeover or buying of a company by another. Also called a “takeover”. An acquisition is done by purchasing the shares of the target company. Sometimes these takeovers are friendly (by agreement) or hostile (the target doesn’t want to be taken over!). The City Code on Takeovers governs how acquisitions of listed companies (companies on the stock exchange) should be made.