What is 'volatility'? Definition & meaning

More terms

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).

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Diversification

An investment strategy in which money is put into a variety assets.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Venture Capital

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

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

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.

Costs and Charges

The money you pay when investing.

Net Income (NI)

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

Volatility