What is 'Value Investing'? | Freetrade Dictionary

The art of buying shares which trade below their value, according to the analysis of the value investor.

More terms

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Total Return

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

Leverage

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

Gilt

What is a gilt?

Securities

Bonds and stocks.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

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.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

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).

Value Investing