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Erosion
ErosionA negative impact on one or more of a firm's existing assets. SIMILAR TERMS-------------------------------------- PREVIOUS AND NEXT TERMS-------------------------------------- Equivalent annual cash flow Annuity with the same net present value as the company's proposed investment. Equivalent annual cost The cost per year of owning an asset over its entire life. Equivalent bond yield Effective annual yield on a short-term, noninterest-bearing security calculated for comparison to yields quoted on coupon securities. Equivalent loan Given the after-tax stream associated with a lease, the maximum amount of conventional debt that the same period-by-period after-tax debt service stream is capable of supporting. Equivalent taxable yield The yield that must be offered on a taxable bond issue to give the same after-tax yield as a tax-exempt issue. Erosion Escalator clause Provision in a contract allowing cost increases to be passed on. Escheat Reversion of monies or securities to the state in which the security holder was last known to reside, when no claim by the security holder has been made after a certain period of time fixed by state law. Escheat Period The period of elapsed time required by applicable state law for property to be presumed abandoned. Escheatment The process of turning over unclaimed or abandoned property to a state authority. Escrow Property or money held by a third party until the agreed upon obligations of a contract are met. We thank you for using the Financial Dictionary to search for Erosion. If you have a better definition for Erosion than the one presented here, please let us know by making use of the suggest a term option. This definition of Erosion may be disputed by other professionals. Our attempt is to provide easy definitions on Erosion and any other medical topic for the public at large.
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