Dictionary
/
Equity

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

More terms

Bull market

We explain what a 'bull market' means
Read more

Yield to maturity (YTM)

What is yield to maturity and why is it useful?
Read more

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
Read more

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.
Read more

Net asset value

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

Total Return

This is the measurement of a fund’s performance in a specific period.
Read more

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.
Read more

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.
Read more

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

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.

Follow us on