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.

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Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.
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Float

Listing a company on a stock exchange, or the shares that are genuinely up for grabs once it’s there.
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Lock-up period

The period after an IPO when insiders have to sit on their hands and can’t sell their shares.
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Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.
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Value Investing

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

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.
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Holding Period Return

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