Next video:
Loading the player...

The time value of money is a fundamental concept in finance - and it influences every financial decision you make, whether you know it or not. Learn the basics here.

Related Articles
  1. Investing

    Understanding Risk And Time Horizon

    The interaction between your risks and your time horizon influences every investment decision you make, whether you know it or not. Learn the basics here.
  2. Investing

    What Is Fundamental Analysis?

    Fundamental analysis is one of the basic ways to evaluate stocks. Find out what it is and how it can work for you.
  3. Investing

    Financial Concepts

    Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear.
  4. Investing

    Fundamental Analysis For Traders

    Find out how this method can be applied strategically to increase profit.
  5. Personal Finance

    How to Master Your Personal Financial Plan

    Will the financial decisions you’re making lead to where you want to go? Time to stop wondering.
  6. Investing

    The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
  7. Investing

    Fundamental Investment Metrics For Buying Stocks And Bonds

    Don't let the name fool you. Even a "fundamental" investor has to pay attention to certain metrics.
  8. Investing

    Introduction To Fundamentally Weighted Index Investing

    If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you.
  9. Taxes

    8 Financial Tips For Young Adults

    You don't need an MBA to learn how to save money and invest in your future.
Hot Definitions
  1. Interest Expense

    The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. ...
  2. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  3. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
  4. Private Placement

    The sale of securities to a relatively small number of select investors as a way of raising capital.
  5. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  6. Backward Integration

    A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it ...
Trading Center