What is the 'holding period return'? Definition & meaning

More terms

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Stock Market

A place where shares of publicly listed companies are traded.

Diversification

An investment strategy in which money is put into a variety assets.

Holding Period Return