Real
1. A term which has been restated to exclude the effects of inflation. For example, if £100 is invested for a year at a nominal rate of 10% and inflation is 2%, we can say that the nominal rate is 10% but the real rate is only (1.10/1.02) - 1 = 7.84%. This is because goods which cost £100 today will cost £102 in a year's time. Therefore only a 7.84% return has been made if we take into account the new prices of goods.
2. Inflation-proof.
3. Tangible. For example the real assets of a business would include its stock, plant and machinery.
4. Real property means land and buildings.
5. Real-life issues and opportunities are those with a strong foundation in practical experience. (Contrasted with other issues which are considered to be more theoretical.)
6. Options. Relating to an operational decision or outcome.
See also
