What is 'Time Value of Money'? | Freetrade Dictionary

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

More terms

Bond

Learn what a bond is

Stock Market

A place where shares of publicly listed companies are traded.

SPAC

Find our what a SPAc or special purpose acquisition company is.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Diversification

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

Total Return

This is the measurement of a fund’s performance in a specific period.

Investment Return

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

Beta

Learn what Beta stands for in finance.

Time Value of Money