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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

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Gilt

What is a gilt?

LSE

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

Hedge Fund

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

Rate of Return

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

Time Value of Money

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

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

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