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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UK Treasury bill

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

A street in New York that became a figure of speech for the financial markets of the US.
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Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
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Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.
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Fundamentals

The data or information that is likely to impact a company's stock price.
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Dividends

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