Internal Rate of Return (IRR)

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

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

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

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.

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

What is a gilt?

The highest, or lowest, price a share has traded at in a passing year.

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.