Gilt-Edged Securities

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DEFINITION of 'Gilt-Edged Securities '

High-grade bonds that are issued by a government or firm. This type of security originally boasted gilded edges, thus the name. 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.

INVESTOPEDIA EXPLAINS 'Gilt-Edged Securities '

Gilt-edged securities are a high-grade investment with very low risk. Typically, these are issued by blue chip companies that dependably meet dividend or interest payments because they are well-established and financially stable .

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