What is the 'spot rate'? Definition & meaning

More terms

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

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.

Total Return

This is the measurement of a fund’s performance in a specific period.

Net Income (NI)

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

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).

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Custodian bank

Learn what a custodian bank is.

Quantitative easing

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

Net Asset Value (NAV)

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

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Spot Rate