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

More terms

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Coupon

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.

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.

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.

Leverage

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

Maturity value

What's the maturity value of a bond?

Stock Market

A place where shares of publicly listed companies are traded.

Arithmetic Mean

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

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Over-The-Counter (OTC)