What is 'volatility'? Definition & meaning

More terms

Account balance

The amount of money a user has stored in a financial repository.

Total Return

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

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.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Ponzi Scheme

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

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Professional Client

An investor that is able to meet several regulatory criteria.

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

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Volatility