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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.

More terms

Volatility

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

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

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.

Yield

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

Fundamentals

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

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Rate of Return

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

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