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

More terms

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

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.

Junk Bond

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

Investment Return

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

Yield curve

A graphical representation of interest rates over time

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Withholding Tax

A tax deduction made at the source of the payment.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

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Time Value of Money