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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

Rate of Return

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

Net asset value

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

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

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