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Nominal amount

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

More terms

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Unicorn

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

Know Your Customer (KYC)

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

UK Treasury bill

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

Securities

Bonds and stocks.

Interest Rate

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

Yield

Income from an investment as a percentage of its current price.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

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