Investor Glossary-amortizationInvestor Glossary-amortizationInvestor Glossary-amortizationInvestor Glossary-amortizationInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Amortization

The HTML to link to this page
 

Amortization refers to the repayment of a debt in small periodic installments of principal and interest, as determined by an amortization schedule. Amortization is mainly used in calculating loan repayments, such as a mortgage. Under the amortization repayment model, payments are distributed into equal sums over the life of a loan, making amortization a popular model. In accounting, amortization is often used to write off an intangible asset (such as a copyright) over the period of its estimated useful life or other pre-determined period. Amortization cannot be used if an intangible asset has an indefinite useful life. Amortization is often confused with depreciation, which is the reduction of the value of a tangible asset over its estimated useful life, based on everyday wear and tear and the affects of time. Amortization also differs from depletion, which is the process of decreasing the value of a taxable natural resource.



Rate this amortization definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, diluted share, stock market close, VIX, option premium, 401a, per diem, labor relations, deferred tax, inflation, current ratio, EBITDA, limit order, APR, retained earnings, balance sheet, wholly-owned subsidiary, phantom income, 1031 exchange, average price per share, class C shares, LIBOR, deferred revenue, in escrow, command economy, quality assurance, real GDP, covered put, Zero Cost Collar, minority interest, open position, Key Rate Duration, margin rate, ex-dividend, cancelled check, FICO score, stock split, liquidity ratio, 1035 exchange, dividends payable, 144a, annual return, FTSE, debt service coverage, implied volatility, risk management, irrevocable trust, required rate of return, ex-dividend date


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use