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.

S&P 500

Find out what is the definition of the S&P 500 index.

Zero-Sum Game

A situation in which one person's gain is another's loss.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

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).

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.

Year to Date (YTD)

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

Quick ratio

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

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Time Value of Money