What is a 'Packaged Retail and Insurance-based Investment Product (PRIIP)'? Definition & meaning

More terms

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Volatility

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

Equity

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

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

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.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

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.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

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Packaged Retail and Insurance-based Investment Product (PRIIP)