What are 'index-linked gilts'? Definition & meaning

More terms

Conditional dealing

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

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Bookbuilding

How banks work out what investors will pay for shares before an IPO, one order at a time.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

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.

Account balance

The amount of money a user has stored in a financial repository.

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Index-linked gilts