Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

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Withholding Tax

A tax deduction made at the source of the payment.
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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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Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.
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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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Securities

Bonds and stocks.
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Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.
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Custodian bank

Learn what a custodian bank is.
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Yield to maturity

What is yield to maturity and why is it useful?
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index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
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