What is 'leverage'? Definition & meaning

More terms

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

After-hours trading

Trading outside of a stock exchange's opening hours.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

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

Bond

Learn what a bond is

Unicorn

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

Money laundering

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

Accounting standards

The rules a company follows when preparing financial statements.

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.

Leverage