What is the 'interest rate'? Definition & meaning

More terms

Equity ETF

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

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Volatility

A measure of how much the prices of an asset or index vary over time.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

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.

Interest Rate