What is 'Internal Rate of Return (IRR)'?

More terms

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Professional Client

An investor that is able to meet several regulatory criteria.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

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.

Diversification

An investment strategy in which money is put into a variety assets.

Annualised Rate of Return

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

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Bond

Learn what a bond is

Internal Rate of Return (IRR)