# Constant

1. *Financial maths - statistics - universal constants.*

A universal constant is a value observed in nature, that forms part of a mathematical or statistical relationship.

Examples include the exponential constant - *e* - approximately 2.718282.

2. *Financial maths - analysis - modelling - inputs.*

More broadly, any amount that is assumed to be unchanged, for the purpose of producing a simplified model.

For example, the dividend valuation model assumes a constant rate of dividend growth - "g" - from Time 1 onward.

Contrasted with a *variable*.

Making this assumption in error is a common source of analysis and modelling errors.

This assumption is sometimes known as the *ceteris paribus* assumption.

3. *Measurement - money market funds.*

Any basis of measurement in which an amount is targeted - or held - at a fixed level.

For example, the *constant currency* exchange rate basis of comparing financial results in successive periods.

Another example is the *constant net asset value* basis of maintaining a money market fund.

4. *Continuity - near-continuity.*

Examples include constant trading, and constant dialogue between interested parties.