What is 'equity'? Definition & meaning

More terms

Capital

Learn what financial capital means

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.

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.

Rate of Return

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

Volatility

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

Zero-Sum Game

A situation in which one person's gain is another's loss.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Withholding Tax

A tax deduction made at the source of the payment.

Net asset value

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

Equity