What is 'withholding tax'? Definition & meaning

More terms

Capital

Learn what financial capital means

Bed & ISA

Understand what Bed and ISA is and how it works

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

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.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

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

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Withholding Tax