Glossary of Terms

  • Zero coupon bonds

    Zero coupon bonds are debt securities that trade at a discount from the face value and mature at par. Thus, the bond pays no interest to the bondholders during its lifetime.
  • Zero Dividend Preference Shares (ZDPs)

    These preference shares are issued by split capital investment trusts which have limited lives and pay no dividends during their lives but are instead designed to provide a pre-determined, but not guaranteed, capital entitlement on expiry. As preferred capital, entitlements of ZDPs rank higher than ordinary capital.