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continuous compounding

   Also found in: Legal, Wikipedia, Hutchinson 0.03 sec.
Continuous Compounding
The process of earning interest on top of interest. The interest is earned constantly, and immediately begins earning interest on itself.

Notes:
This is an extreme case of compounding, most interest is compounded on a monthly, quarterly, or semiannual basis.

Continuous compounding
The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself.
continuous compounding
Compounding of interest using the shortest possible interval of time. Although continuous compounding sounds impressive, in practice it results in virtually the same effective yield as daily compounding.
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Turnkey, custom-engineered batch or continuous compounding lines can be provided complete with upstream and downstream support equipment and customized automation.
Compounding and mixing systems by Plastics Technology
Results from this research demonstrate that continuous compounding of rubber for technical goods is a suitable and promising alternative to today's batch mixing process.
Continuous mixing of EPDM rubber with a co-rotating twin screw ... by Lavaggi, Pietro / Rubber World
The total rate of return--price changes plus dividends--on the stock in question, measured on the basis of continuous compounding over the option's life, is a random variable drawn from a normal bell curve distribution.
FASB 123: putting together the pieces by Mountain, James R. / Journal of Accountancy
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