Gilt-Edged

Gilt-Edged - Gilt-Edged is defined as fixed income or index-linked bonds issued strictly by the government. It is, for investment purposes, the good faith exercise in trusting the government to perform properly in finance. The purchaser or holder of the bond is in effect, lending or extending private sector money into the government in return for a regular interest payment. Holding a gilt-edged bond does not mean it is necessary to hold until redemption. It is like shares of stock securities tradable as instruments. The price fluctuation is accountable to the supply and demand of the main influence on the stock market.