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.

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Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.
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Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.
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Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.
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Professional Client

An investor that is able to meet several regulatory criteria.
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Annualised Rate of Return

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

A debt instrument issued by the UK government with a maturity of less than one year.
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Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.
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Diversification

An investment strategy in which money is put into a variety assets.
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Time Value of Money

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