Income statement

Trading in new shares before they’re officially admitted to the exchange, on the condition that admission goes ahead.

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

The art of buying shares which trade below their value, according to the analysis of the value investor.

The value of a company's assets relative to the number of shares it has.

What is yield to maturity and why is it useful?

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

A way of calculating compound returns on an investment or savings over a set period of time.

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.