Dictionary
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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

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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.
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Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.
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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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Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.
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Dirty price

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

The average annual return an investor sees over a set period of time.
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Zero coupon bonds

What is a zero coupon bond?
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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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