What is the 'Profit and Loss statement (P&L)'? Definition & meaning

More terms

Accounting standards

The rules a company follows when preparing financial statements.

Annualised Rate of Return

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

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.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

LSE

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

Bed & ISA

Understand what Bed and ISA is and how it works

Profit and Loss Statement (P&L)