What is 'Gross Margin'? | Freetrade Dictionary

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

More terms

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Hedge Fund

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

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.

Total Return

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

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Earnings per share

We look at what earnings per share mean 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.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Gross Margin