Time value of money and Market conditions: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add links.)
 
(Create page. Sources: Linked pages.)
 
Line 1: Line 1:
''Investment and funding appraisal.''
''Markets - demand - supply - market price - volatility - liquidity - deep markets.''


(TVM).  
Market conditions describe the state of a particular market, or of markets generally.


Time value of money is the concept that the value of money is linked to time because of its capacity to earn interest over time.  
Key elements of market conditions are supply and demand.


Thus, a given amount of money available today is worth more than a given amount of money to be received tomorrow, because the amount available now can be invested immediately.
Other relevant dimensions include market prices, price volatility, liquidity and depth.
 
 
The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.
 
 
All other things being equal, the time value of money means:
 
*Earlier receipts are better than later ones, for the one receiving.
 
*Later payments are better - compared with earlier payments - for the one paying.
 
*Later receipts are worse, for the one receiving.
 
*Earlier payments are worse, for the one paying.




== See also ==
== See also ==
* [[Compound interest]]
* [[5Cs of credit]]
* [[Discounted cash flow]]
* [[Black market]]
* [[Float]]
* [[Capital market]]
* [[Future value]]
* [[Cash market]]
* [[Interest]]
* [[Commodity]]
* [[Internal rate of return]]
* [[Condition]]
* [[Investment appraisal]]
* [[Debt capital market]] (DCM)
* [[Net present value]]
* [[Deep market]]
* [[Opportunity cost]]
* [[Demand]]
* [[Present value]]
* [[Efficient market]]
* [[Rate of return]]
* [[Efficient market hypothesis]] (EMH)
* [[Return]]
* [[Emerging market]]
* [[Simple interest]]
* [[Equity market]]
* [[Time value]]
* [[Financial markets]]
* [[Forward market]]
* [[Free market]]
* [[Grey market]]
* [[Liquid market]]
* [[Loan Market Association]]
* [[Market]]
* [[Market abuse]]
* [[Market environment matrix]] (MEM)
* [[Market maker]]
* [[Market mechanism]]
* [[Market price]]
* [[Market risk]]
* [[Market taker]]
* [[Market value]]
* [[Money market]]
* [[Off-market]]
* [[Primary market]]
* [[Product Market Matrix]] (PMM)
* [[Regulated market]]
* [[Regulation]]
* [[Retail]]
* [[Secondary market]]
* [[Segmentation]]
* [[Single Market]]
* [[Spot market]]
* [[Stock market]]
* [[Supply]]
* [[Systemic risk]]
* [[Wholesale]]


[[Category:Corporate_finance]]
[[Category:Manage_risks]]
[[Category:Investment]]

Latest revision as of 13:04, 13 September 2023

Markets - demand - supply - market price - volatility - liquidity - deep markets.

Market conditions describe the state of a particular market, or of markets generally.

Key elements of market conditions are supply and demand.

Other relevant dimensions include market prices, price volatility, liquidity and depth.


See also