Absolute Interest

What is ‘Absolute Interest’

Total and complete ownership of an asset or property. An individual with an absolute interest has both a legal and beneficial possession of said asset or property. The term “absolute interest” indicates that the owner’s interest is not diluted by another party’s ownership, nor is it dependent on conditions that must be fulfilled.

Explaining ‘Absolute Interest’

An absolute interest in an asset or property gives the owner full entitlement to the benefits and privileges that accrue from such ownership. It is the opposite of a contingent interest, which confers an ownership interest only upon the fulfillment of certain conditions or the occurrence of specific circumstances.

Further Reading

  • Constant absolute risk aversion preferences and constant equilibrium interest rates – onlinelibrary.wiley.com [PDF]
  • The importance of deviations from the absolute priority rule in Chapter 11 bankruptcy proceedings – www.jstor.org [PDF]
  • Ex ante costs of violating absolute priority in bankruptcy – onlinelibrary.wiley.com [PDF]
  • Financial links around the Pacific Rim: 1982-1992 – ageconsearch.umn.edu [PDF]
  • Bank branch efficiency evaluation by means of least absolute deviations and DEA – www.emerald.com [PDF]
  • Absolute priority rule violations and risk incentives for financially distressed firms – www.jstor.org [PDF]
  • Fitting Term Structure of Interest Rates with Cubic Spline Function Based on Least Absolute Deviations Regression [J] – en.cnki.com.cn [PDF]
  • The economics of conflicts of interest in financial institutions – www.sciencedirect.com [PDF]
  • Absolute and relative risk aversion: An experimental study – link.springer.com [PDF]