What is 'Junk Bond'? | Freetrade Dictionary

More terms

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Capital

Learn what financial capital means

Annualised Rate of Return

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

Gross Margin

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

Junk Bond

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

Income statement

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

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Junk Bond

More terms

Accrued interest

index-linked gilts

Capital

Annualised Rate of Return

Gross Margin

Junk Bond

Income statement

Unicorn

Zero-Sum Game

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