Financial Dictionary.

This is a browseable and searchable reference tool for terminology relating to UK-based personal finance and financial products.

You can browse alphabetically, or search for a specific term.

A B C D E F G H I J L M N O P Q R S T U V W Z

Gearing

Definition: In general term, this is a reference to the amount of debt with a company's balance sheet in proportion to its assets. When used in reference to Investment Trusts, this refers to the amount of outstanding loans in proportion to the value of the trust's investment holdings. Because Investment Trusts are quoted companies they can borrow for commercial purposes - i.e. to purchase more investments. If the purchased investments perform well, they can repay the loans AND benefit their shareholders. However, if the investments perform badly, this will have a significant impact on the share price, as not only has the value of underlying holdings fallen, but the loans still have to be repaid. The higher the gearing ratio of a Trust, the more volatile and high risk it is perceived to be.

Recent Financial Topics

After falling into disrepair, the church in south west London was purchased in 2015 by a developer and converted into high-end flats.

Flat in former London church with HUGE stained glass window could be yours for £2.1m
19/04/2026 02:00 AM

Higher rates have slashed the break-even point on a £100,000 annuity by seven years, meaning it's possible to recoup the initial outlay far quicker than five years ago.

Higher annuity rates slash break-even point by SEVEN years: Experts say it's a 'buyer's market'
19/04/2026 02:00 AM

The average amount put down by first-time buyers in England is a whopping £63,855, according to the latest mortgage data from trade body UK Finance.

Is it a smart move or reckless gamble to buy a home with a 98% mortgage?
18/04/2026 07:20 PM

Financial Dictionary. (function() { var po = document.createElement('script'); po.type = 'text/javascript'; po.async = true; po.src = 'https://apis.google.com/js/plusone.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(po, s); })();

Recent Financial Topics

Financial Dictionary.