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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

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Bond

Learn what a bond is

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Zero coupon bonds

What is a zero coupon bond?

S&P 500

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

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