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Time Value of Money

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

The concept that money you have now is more valuable than the same sum in the future.

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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.
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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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Base rate

What's the base rate?
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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.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.
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Bond

Learn what a bond is
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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.
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Alpha

The percentage by which an investor outperforms a relevant benchmark.
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