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

Depository

We look at what is a depository and what role they play in keeping markets work.
Read more

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
Read more

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.
Read more

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.
Read more

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
Read more

Maturity value

What's the maturity value of a bond?
Read more

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
Read more

Alpha

The percentage by which an investor outperforms a relevant benchmark.
Read more

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk