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Profit and Loss Statement (P&L)

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.
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Compound interest

Understand what compound interest means and how it's calculated
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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).
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Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.
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Net asset value

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

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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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.
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S&P 500

Find out what is the definition of the S&P 500 index.
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Margin call

Learn what a margin call stands for in financial terms.
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