Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

A startup valued at over £1 billion. They are rare, hence the name.

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Internal Rate of Return (IRR)

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

A method of trading using borrowed money that usually involves a very high level of risk.
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Withholding Tax

A tax deduction made at the source of the payment.
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Over-The-Counter (OTC)

A security that is sold outside of an exchange.
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Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.
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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.
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Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.
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Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.
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