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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

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Zero coupon bonds

What is a zero coupon bond?

Zero-Sum Game

A situation in which one person's gain is another's loss.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

After-hours trading

Trading outside of a stock exchange's opening hours.

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.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

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