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

Xetra

A trading venue operated by the Frankfurt Stock Exchange.
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

SPAC

Find our what a SPAc or special purpose acquisition company is.
Read more

Compound interest

Understand what compound interest means and how it's calculated
Read more

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
Read more

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
Read more

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.
Read more

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.
Read more

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk