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

More terms

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Depository

We look at what is a depository and what role they play in keeping markets work.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Yield

Income from an investment as a percentage of its current price.

Yield curve

A graphical representation of interest rates over time

S&P 500

Find out what is the definition of the S&P 500 index.

Net Income (NI)

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

Securities

Bonds and stocks.

Time Value of Money