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Guide to financial terms and definitions

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Y

Active investment

Alpha

Alternative investments

Annuity

Asset class

Assets under management (AUM)

Accumulation unit or share

Active Management

Alternative assets

Bull market

Bear market

Beta

Benchmark

Bid or Offer spread

Black swan event

Blue chip

Bond

Book value

Bottom-up

BRICs

Broker

CEO

Coupon

Capital growth

CGT

Corporate bond

Closed-ended

Commodities

Default risk

Derivative

Deflation

Distribution

Diversification

Dividend

Drawdown

Dual pricing

Duration

Enterprise Investment Scheme (EIS)

Equities (Shares/Stocks)

Emerging market

Exchange traded fund (ETF)

ESG

Financial Conduct Authority

Financial Services Compensation Scheme (FSCS)

Floating Rate Notes (FRNs)

Finance Director (FD)

Fixed income

Frontier market

Futures

Fund

Fund supermarket

FTSE 100

Fund-of-funds

Fund share classes

General Investment Account (GIA)

Gearing

Government bonds

Greenwashing

Index

Inflation

Investment Themes

Investment Company with Variable Capital (ICVC)

Individual Savings Account (ISA)

Impact investing

Investment grade bonds

Investment Trust Discount

Initial Public Offering (IPO)

Investment trust

Income unit

Income drawdown

Junior ISAs (JISAs)

Junk bonds

KIID

Liquidity

Leveraging

LIBOR

Market capitalisation

M&A

Mid Cap

Multi-Asset

Multi-manager

Mutual fund

Nominal return

New Individual Savings Account (NISA)

OEIC

Ongoing Charge Figure (OCF)

Open-ended

Passive investment

PE Ratio

Pound cost averaging

Premium

Private equity

Profit warning

Quantitative Easing (QE)

Real return

Redemptions

Responsible investing

Rights issue

Risk

S&P 500

Securitisation

Sector rotation

Self-Invested personal pension (SIPP)

Strategic Asset Allocation

Security

Share buyback

Share class

Shareholder

Shares in issue

Shorting

Single pricing

Systemic returns

Sustainable investment

Sustainable Development Goals (SDGs)

Swap

Target risk

Top-down

Tracker fund

Total return

Trustee

Tactical Asset Allocation

Undervalued

Unit trust

Volatility

Valuation point

VCT

Wrapper

Yield

Yield curve

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