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

More terms

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Net Income (NI)

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

Collective investment scheme

Learn what's a collective investment scheme

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

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.

Investment Return

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

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Diversification

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

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Time Value of Money