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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

Yield to maturity (YTM)

What is yield to maturity and why is it useful?

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

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.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Value stocks

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

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Securities

Bonds and stocks.

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