Dirty price

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

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American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.
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Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.
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Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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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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Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.
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Rate of Return

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

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.
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Custodian bank

Learn what a custodian bank is.
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