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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Zero-Sum Game

A situation in which one person's gain is another's loss.
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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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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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Earnings per share

We look at what earnings per share mean and how to calculate it
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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.
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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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Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.
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Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..
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