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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Formal admission

The moment new shares are officially admitted to the stock exchange and open to trading for everyone.
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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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Income statement

A summary of a company's income and expenses over a set period of time.
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Costs and Charges

The money you pay when investing.
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Conditional dealing

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

A physical/digital place where stockbrokers and traders can buy and sell securities.
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Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.
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OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.
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Compound interest

Understand what compound interest means and how it's calculated
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