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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

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Diversification

An investment strategy in which money is put into a variety assets.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Total Return

This is the measurement of a fund’s performance in a specific period.

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Spot Rate

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

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