What is 'yield'? Definition & meaning

More terms

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

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.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

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

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.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Zero coupon bonds

What is a zero coupon bond?

Hypothesis Testing

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

Depository

We look at what is a depository and what role they play in keeping markets work.

Yield