Junk Bond

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

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

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Annualised Rate of Return

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

A way of calculating compound returns on an investment or savings over a set period of time.
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UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
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Diversification

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

The rules a company follows when preparing financial statements.
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Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.
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Bed & ISA

Understand what Bed and ISA is and how it works
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Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
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Maturity date

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.
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