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Time Value of Money

Discussion in 'Investing Glossary' started by Glossary, 28th Sep, 2006.

  1. Glossary

    Glossary Active Member

    Joined:
    12th Sep, 2006
    Posts:
    25
    Definition:

    This is the concept that it is better to have a dollar today than a dollar tomorrow. Apart from the obvious fact that you can use the dollar sooner, inflation will reduce in real terms the purchasing power of tomorrow's dollar compared with today's dollar.