Conventional gilt

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

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Alpha

The percentage by which an investor outperforms a relevant benchmark.
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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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Zero-Sum Game

A situation in which one person's gain is another's loss.
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Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.
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Clean price

The quoted price of a gilt, which excludes accrued interest
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Beta

Learn what Beta stands for in finance.
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Oligopoly

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

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