What is a 'nominal amount'? Definition & meaning

More terms

LSE

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

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Geometric Mean Return

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

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.

Real Estate Investment Trust (REIT)

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

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Junk Bond

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

UK Treasury bill

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

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Nominal amount