Glossary
Government Stock
An IOU from the Government. The public and companies can lend the Government money. In return they get a fixed rate of interest for a certain period of time and then the money is repaid. The document which acknowledges the amount the Government owes each person or company is called Government Stock.
The rate of interest paid on a loan may be either a fixed rate or a floating rate. For a fixed rate loan, the interest rate is set at the date you take out your loan and remains the same throughout the term of your loan, irrespective of whether bank interest rates rise or fall.
Money paid in return for the use of money. If the bank is using your money (in a savings account) they pay you interest. If you are using the bank's money (via a loan), you pay the bank money.
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Here you'll find explanations of the many financial terms used throughout the Sorted website.
