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

More terms

Profit and Loss Statement (P&L)

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

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Account balance

The amount of money a user has stored in a financial repository.

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Stock Exchange

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

Bond

Learn what a bond is

NASDAQ

A US stock exchange specialising in the shares of technology companies.

Inflation

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

Time Value of Money