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

More terms

Securities

Bonds and stocks.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Clean price

The quoted price of a gilt, which excludes accrued interest

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Exchange-Traded Fund (ETF)

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

Fixed Income

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

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.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Over-The-Counter (OTC)