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

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.
Read more

Annualised Rate of Return

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

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
Read more

Earnings per share

We look at what earnings per share mean and how to calculate it
Read more

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.
Read more

Time Value of Money

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

Capital

Learn what financial capital means
Read more

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.
Read more

Bookbuilding

How banks work out what investors will pay for shares before an IPO, one order at a time.
Read more

You're just minutes away from commission-free investing

CAPITAL AT RISK. OTHER CHARGES MAY APPLY.