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index-linked gilts

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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Zero-Sum Game

A situation in which one person's gain is another's loss.
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Net Income (NI)

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Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.
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The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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