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.

More terms

Geometric Mean Return

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

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

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.
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Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.
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Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.
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Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.
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Zero coupon bonds

What is a zero coupon bond?
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Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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