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

More terms

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Withholding Tax

A tax deduction made at the source of the payment.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Volatility

A measure of how much the prices of an asset or index vary over time.

Collective investment scheme

Learn what's a collective investment scheme

Dirty price

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

Yield

Income from an investment as a percentage of its current price.

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.

Profit and Loss Statement (P&L)

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

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Time Value of Money