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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

Volatility

A measure of how much the prices of an asset or index vary over time.

Securities

Bonds and stocks.

Collective investment scheme

Learn what's a collective investment scheme

Net asset value

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

Yield

Income from an investment as a percentage of its current price.

S&P 500

Find out what is the definition of the S&P 500 index.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Synthetic ETFs

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

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