compounding frequency

Definition

The number of compounding periods in one year. For example, annual compounding has a compounding frequency of one, while monthly compounding has a compounding frequency of twelve.

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You should try and figure out what how the compounding frequency will affect the future of your product to the consumers.

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The main reason I chose to add this particular equity to my portfolio was the high compounding frequency as I intend to hold it for a while.

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With the compounding frequency set at twelve, companies are able to provide raises, as well as terminate employees on a month-to-month schedule instead of evaluations at the end of every year.

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compounding compounding method