What is the 'time value of money'? Definition & meaning

More terms

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Diversification

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

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Bond

Learn what a bond is

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Time Value of Money