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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Diversification

An investment strategy in which money is put into a variety assets.
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Bed & ISA

Understand what Bed and ISA is and how it works
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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.
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Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.
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Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
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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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Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.
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Yield

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

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