Cost

Definition:

The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Troubled assets

In context of the Troubled Asset Relief Program, the term 'troubled asset' is defined as: (A) Mortgages, mortgage backed securities, and instruments derived from these that were originated on or... Read More

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