Premium bonds


 

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Premium bonds

See: 'National Savings'.



Similar Matches

Tender offer premium

Tender offer premium

The premium offered above the current market price in a tender offer.


Term premiums

Term premiums

Excess of the yields to maturity on long-term bonds over those of short-term bonds.


Equity risk premium

Equity risk premium

The concept that justifies investment in stocks, where your capital is at risk, rather than gilt-edged bonds which are as safe an investment as you can get and where your capital is not at risk provided you hold the bond til maturity.The theory goes that it is only worth investing in stocks if the return you get exceeds the return you could get on gilts - otherwise, why would you take on the extra risk? The difference in returns is known as the equity risk premium.Every historical analysis of returns achieved by stocks compared to bonds shows that stocks outperform bonds in the long term. This is why you repeatedly hear pundits say that the stock market, while risky in the short term, is not risky in the long term. The key thing, as a private investor, is to leave your money in the market for long enough for the long term benefit to eradicate the short term risk. Stick your money in the market for two months, and it might go down 20% if you are unlucky. Stick it in a well-diversified portfolio for 30 years, and it should produce returns that comfortably exceed what you could have got from bonds.


Premium

Premium

In the context of insurance, a premium is the regular sum you pay to keep your cover in force.


Risk premium approach

Risk premium approach

A common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns.


Further Suggestions

Unamortized premiums on investments
Option premium
Liquidity premium
Indemnity Guarantee Premium
option premium
Conversion premium
Percentage premium
Single premium life insurance
Waiver of premium
High premium convertible debenture
Insurance premium
insurance premium
Bond premium
waiver of premium
Call premium
Fixed premium
Premium income
life assurance premium relief
warrant premium
premium
Risk premium
Forward premium
Default premium
Forward premium
Risk premium


 
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