Dictionary
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Yield

Yield

Income from an investment as a percentage of its current price.

Income from an investment as a percentage of its current price.

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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.
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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.
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Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.
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Leverage

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

Learn what financial capital means
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Annualised Rate of Return

The average annual return an investor sees over a set period of time.
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