What is 'inflation'? Definition & meaning

More terms

Arithmetic Mean

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

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

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.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Investment Trust

A company that pools money together from multiple investors and then invests it.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

Inflation