Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

The increase in the prices of goods and services over time, and the process by which money loses its value.

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Custodian bank

Learn what a custodian bank is.
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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.
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Arithmetic Mean

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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Costs and Charges

The money you pay when investing.
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Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
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Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).
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Margin call

Learn what a margin call stands for in financial terms.
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Geometric Mean Return

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

The currency exchange rate a bank quotes, valid with immediate effect.
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