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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

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Net asset value

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

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Withholding Tax

A tax deduction made at the source of the payment.

Custodian bank

Learn what a custodian bank is.

UK Treasury bill

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

Collective investment scheme

Learn what's a collective investment scheme

LSE

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

Annualised Rate of Return

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

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