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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 firstname.lastname@example.org and they will be pleased to help.
The Net Asset Value (NAV) is the value of the underlying securities based on quoted mid-market prices, together with other assets, less liabilities, and divided by the number of Shares in issue. It is quoted in pence per Share.
This figure is a measure of profitability.
A company's book value is calculated by dividing the market price of its outstanding stock by the company's book value, and then adjusting for the number of shares outstanding (Stocks with negative book values are excluded from this calculation).
The rate of return on an investment without adjustment for inflation. The declining value of money in terms of its spending power is ignored.
These are goods where demand is not governed by the economic cycle. It covers the following:
Services where demand does not fluctuate with the economic cycle. This covers:
A credit rating which means that a government or corporate bond has a relatively high risk of default.