Dictionary
/
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.

More terms

Professional Client

An investor that is able to meet several regulatory criteria.
Read more

Total Return

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

Investment Return

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

Beta

Learn what Beta stands for in finance.
Read more

Margin call

Learn what a margin call stands for in financial terms.
Read more

Withholding Tax

A tax deduction made at the source of the payment.
Read more

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..
Read more

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.
Read more

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.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2026 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.

Follow us on