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Coupon

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.

More terms

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Zero coupon bonds

What is a zero coupon bond?

Zero-Sum Game

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

Synthetic ETFs

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

Venture Capital

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

Clean price

The quoted price of a gilt, which excludes accrued interest

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Securities

Bonds and stocks.

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