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FINANCIAL GLOSSARY : Z


Zero coupon bond

Bonds issued at a deep discount which do not receive any income until they mature.


Zero dividend preference share ('zeros')

Zeros are capital shares in a split-capital investment trust. They do not receive any dividend income but get part of the capital growth of the assets held by the trust when the trust is wound up. Zeros are preference shares and are amongst the lower risk type of shares that can be invested in.

 

 

 

 

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