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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

Dirty price

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

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Dividends

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

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Spot Rate

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

SPAC

Find our what a SPAc or special purpose acquisition company is.

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.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

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