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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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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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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Real Estate Investment Trust (REIT)

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

A situation in which one person's gain is another's loss.
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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.
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Stock Market

A place where shares of publicly listed companies are traded.
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Volatility

A measure of how much the prices of an asset or index vary over time.
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Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.
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