What are the gilt edged securities?



Gilt-Edged securities are high grade bonds issued by some national governments or firm whose paper certificate had a gilt(or gilded) edge. Hence, they are known as gilt-edged securities, or gilts for short. In the case of a firm, a gilt-edged security is a stock or bond issued by a company that has a strong record of consistent earnings and can be relied on to cover dividends and interest. Gilt-Edged securities are a high-grade investment with very low risk.

 

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