Investor Glossary-amortizationInvestor Glossary-amortizationInvestor Glossary-amortizationInvestor Glossary-amortizationInsightful stock market charts - Click here
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


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

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
©2004-2015 Investor Glossary - All rights reserved - Terms of Use