Financial Dictionary

This dictionary contains:
24549
financial terms

Reducing balance method of depreciation




Reducing balance method of depreciation

Writes off the same percentage (but consequently a smaller amount) of an asset's value each year.

RELATED TERMS
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Writes
Is the term which represents the granting or initial selling of an option whether it is a put or a call.

Value
The worth or desirability of something expressed as an amount of money.



SIMILAR TERMS
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Reduction option loan (ROL)
A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL matches the borrower to the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates drop more than 2% in a year.

Redundancy
The state of no longer being needed by an employer.



PREVIOUS AND NEXT TERMS
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Redemption fee
A fee some mutual funds charge when an investor sells shares within a specified short period of time.

Redemption or call
Right of the issuer to force holders on a certain date to redeem their convertibles for cash. The objective usually is to force holders to convert into common prior to the redemption deadline.

Redemption yield or maturity yield
The amount of income received from a fixed interest security, including interest and its repayment value, expressed as a percentage of its current market price.

Redenomination
The process of changing the currency value on a financial security.

Rediscount
To discount short-term negotiable debt instruments for a second time, after they have been discounted with a bank.

Reducing balance method of depreciation

Reduction option loan (ROL)
A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL matches the borrower to the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates drop more than 2% in a year.

Redundancy
The state of no longer being needed by an employer.

Reference rate
A benchmark interest rate (such as LIBOR) used to specify conditions of an interest rate swap or an interest rate agreement.

Refinancing
An extension and-or increase in amount of existing debt.

Reflation
Government policy designed to increase economic activity, by increasing the money supply, or reducing taxation or interest rates.

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This dictionary contains 24549 terms.







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