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

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Net Asset Value (NAV)

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

A place where shares of publicly listed companies are traded.
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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.
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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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Rate of Return

Profit on an investment, expressed as a percentage of the investment.
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Clean price

The quoted price of a gilt, which excludes accrued interest
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Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.
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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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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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