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.

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Diversification

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

A physical/digital place where stockbrokers and traders can buy and sell securities.
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Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
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Costs and Charges

The money you pay when investing.
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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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.
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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.
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Bull market

We explain what a 'bull market' means
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