Multiple choice

What is the main attribute of a Gilt-Edged stock?

  1. Bonds issued by the government whose likelihood of default is zero.

  2. A stock backed by gold.

  3. Stocks which are linked to the inflation rate.

  4. Stocks doing well in the capital market.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gilt-edged stocks are high-quality government bonds with minimal risk of default. The term originates from the UK where government bond certificates had gilded edges, signifying their safety and reliability as investments.

Keep practicing — related questions