What are 'costs and charges'? Definition & meaning

More terms

Conventional gilts

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).

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Hedge Fund

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

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

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.

Securities

Bonds and stocks.

Oligopoly

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

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.

Capital

Learn what financial capital means

Costs and Charges