Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

‘Arithmetic mean’ is a fancy way of saying ‘mean’ or ‘average.’

To find the arithmetic mean, you add together a set of numbers and then divide your answer by the amount of numbers you had in that original set.

This may sound wordy - especially for math-o-phobes - but it’s really simple.

Take 1,2,3,4,5 as a set of numbers.

1+2+3+4+5 =15

In our original set, there were 5 numbers. So to get the average we just do….

15 ÷ 5 = 3

Simples.

More terms

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.
Read more

Beta

Learn what Beta stands for in finance.
Read more

Costs and Charges

The money you pay when investing.
Read more

index-linked gilts

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.
Read more

Coupon

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.
Read more

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..
Read more

Professional Client

An investor that is able to meet several regulatory criteria.
Read more

Over-The-Counter (OTC)

A security that is sold outside of an exchange.
Read more

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk