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Accrued interest

Accrued interest

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

More terms

Volatility

A measure of how much the prices of an asset or index vary over time.
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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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Running yield

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

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.
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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.
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Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.
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Yield curve

A graphical representation of interest rates over time
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Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.
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Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.
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