The A-Z of financial markets A comprehensive online financial glossary to help you understand some of the most commonly used terms in finance and the stock market.
The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.
The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.
Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
A beginner’s guide to how to invest in the stocks market to help you get to grips with the basics of buying and selling shares. Learn to invest wisely and you can get great returns over the long run.
