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

More terms

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.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Beta

Learn what Beta stands for in finance.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Withholding Tax

A tax deduction made at the source of the payment.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Net Income (NI)

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

Value Investing

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

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Time Value of Money