Trade Alliance Trust Shares

Alliance Trust (ATST.L) About Alliance Trust PLC is a self-managed investment company with investment trust status. With headquarters in Dundee, Alliance Trust PLC, a FTSE-100 company has been investing since 1888 and is the largest generalist UK investment trust by assets listed on the London Stock Exchange. Industry Equity Investment Instruments Website www.alliancetrust.co.uk Trading Options Financial Spread Betting Contracts For Difference Share Dealing / Stockbroker

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Alliance Trust: Financial Spread Betting vs CFD vs Share Dealing Table below compares Financial Spread Betting, Contract For Difference and Share Dealing trading. For simplicity we use the average brokerage fees to calculate the profit/loss if £1,000 available for investment in Alliance Trust shares (Alliance Trust share price is 350p). Supposedly, you think that Alliance Trust shares will go up by 10% in one month. Calculations Spread Betting CFD Share Number of Shares Equivalent 5,714 5,714 286 Shares go up by 10% in 1 month, Gross Profit £2,000 £2,000 £100 Commission to open position (buy) £60 £15 £12 Commission to close position (sell) £0 £15 £12 Total Commission £60 £30 £24 Financing for one month (5% LIBOR rate) £108 £108 £0 Tax (20% band) £0 £372 £15 + £5 (Stamp Duty) Net Profit £1,832 £1,490 £56

Alliance Trust: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Alliance Trust shares, they are more suitable for short and medium term investments and cover a wide range of markets, including shares, indices, commodities and currencies. Share investing, on the other hand, is a conservative and old way of gaining financial independence and preserving capital. Even though some stockbrokers offer credit facilities it is very rare and not popular amongst private investors.

Risk Warning: Financial Spread Betting and Contracts For Difference (CFDs) are leveraged products and carry a high level of risk to your capital. You may lose more than your initial investment. Share price can go down as well as up and returns on investments are not guaranteed.