Dictionary
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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.

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Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
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Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
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Leverage

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

A place where shares of publicly listed companies are traded.
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Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.
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Professional Client

An investor that is able to meet several regulatory criteria.
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UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
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