What is the 'stock market'? Definition & meaning

More terms

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.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Internal Rate of Return (IRR)

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

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Exchange-Traded Fund (ETF)

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

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.

Geometric Mean Return

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

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Stock Market