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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

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

Hedge Fund

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

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Volatility

A measure of how much the prices of an asset or index vary over time.

Diversification

An investment strategy in which money is put into a variety assets.

Inflation

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

Securities

Bonds and stocks.

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Custodian bank

Learn what a custodian bank is.

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