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Retail Prices Index (RPI)

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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Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
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Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.
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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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Yield

Income from an investment as a percentage of its current price.
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Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.
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Margin call

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Dividends

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Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.
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Running yield

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