What is 'Over-The-Counter (OTC)'? Definition & meaning

More terms

Clean price

The quoted price of a gilt, which excludes accrued interest

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Accounting standards

The rules a company follows when preparing financial statements.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

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.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Over-The-Counter (OTC)