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.

More terms

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).
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NASDAQ

A US stock exchange specialising in the shares of technology companies.
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Leverage

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

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.
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Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.
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Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.
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Beta

Learn what Beta stands for in finance.
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Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
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