Dictionary
/
Gross Margin

Gross Margin

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

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

More terms

Bond

Learn what a bond is
Read more

Maturity value

What's the maturity value of a bond?
Read more

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.
Read more

OEIC

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

Quick ratio

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

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.
Read more

Exchange-Traded Fund (ETF)

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

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
Read more

Volatility

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

© 2026 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