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

More terms

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).

Volatility

A measure of how much the prices of an asset or index vary over time.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Total Return

This is the measurement of a fund’s performance in a specific period.

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.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Over-The-Counter (OTC)