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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

Stock Market

A place where shares of publicly listed companies are traded.

UK Treasury bill

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

Bond

Learn what a bond is

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Yield

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

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Yield curve

A graphical representation of interest rates over time

Rate of Return

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

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