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A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

A document issued by an investment fund to help investors determine if it's the right fund for them.

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

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

How banks work out what investors will pay for shares before an IPO, one order at a time.

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.