What is 'Over-The-Counter (OTC)'? | Freetrade Dictionary

More 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.

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.

American Depository Receipt (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

OEIC

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

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.

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.

Conventional gilts

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).

Over-The-Counter (OTC)