DefinitionAsset allocation is the rigorous implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame....
What is 'Accelerated Reply Mail - ARM' An expedited delivery of business reply mail offered by the U.S. Postal Service. Reply mail may be routed to a postal facility other than the one to which the mail...
What is 'Abatement Cost' A cost borne by many businesses for the removal and/or reduction of an undesirable item that they have created. Abatement costs are generally incurred when corporations are required to reduce possible nuisances or...
What is 'Abeyance Order' An order that is temporarily placed on hold or held in suspension, due to prevailing circumstances, until it can be fulfilled. In advertising, an abeyance order refers to an order from an advertiser...
What is 'Abandonment Option' A clause granting parties the option of withdrawing from the contract before the fulfillment or completion of all contractual duties. This clause adds value by giving the parties the ability to end the...
What is 'Absolute Rate' The fixed portion of an interest-rate swap, expressed as a percentage rather than as a premium or a discount to a reference rate. Explaining 'Absolute Rate' The absolute rate is...
What is 'Absentee Owner' An individual who owns a piece of real estate but does not live in it. An absentee owner may also be an entity such as a corporation or real estate investment trust (REIT)....
What is 'Above-The-Line Costs' Costs incurred during the production of an advertising commercial that are associated with the creative side of it. These costs include those incurred for actors, music and photography. Because creativity cannot be measured...
DefinitionAccelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the...
What is an 'Absolute Priority' An absolute priority is a rule that stipulates the order of payment - creditors before shareholders - in the event of liquidation. The absolute priority rule is used in bankruptcies to decide...