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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Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.
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NASDAQ

A US stock exchange specialising in the shares of technology companies.
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Income statement

A summary of a company's income and expenses over a set period of time.
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Yield curve

A graphical representation of interest rates over time
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Equity ETF

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

The annual interest payment (dividend) divided by the current market price of a bond.
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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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Capital

Learn what financial capital means
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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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