An important consideration for liquidity purposes. Whilst some businesses may show all the characteristics of an excellent investment, the small size of a business can sometimes prove a limiting investment factor. We only want to spend time researching businesses whose shares we can actually buy and sell.
= Number of shares * Price per share
Conceptually we have a reasonable understanding of inflation. As an economic term, inflation represents the general price rise of goods and services over a predetermined time.
Usually, your bank would pay interest on your savings accounts. Negative interest rates turn this around and mean customers have to pay banks to hold their savings.
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
If you like this article, follow us for more insights.
To receive more content like this subscribe today.