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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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