Financial jargon explained

Here you’ll find a simple explanation of some of the most commonly used investment terms. If there is any other financial jargon you want translated, please call our Customer Service Team free on 0800 597 2525 or email us at and they will be pleased to help.




The process of borrowing against gross assets. In a rising market this will enhance returns because of increased exposure to the market. However, it will also increase losses in a falling market. Gearing is also known as leverage.

General Industries

This sector covers:

  • Aerospace & Defence
  • Electronic & Electrical Equipment
  • Engineering & Machinery


Bonds issued by the British Government; abbreviation of Government gilt-edged securities. Regarded as a secure type of bond and eligible to be sheltered from tax within an ISA.