/

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

Base rate

What's the base rate?

Net asset value

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

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Real Estate Investment Trust (REIT)

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

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

SPAC

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

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.