Credit Terms

Definition:

The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period.

Investing Essentials


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

Term of the Day

Bundling, unbundling

Creation of securities either by combining primitive and derivative securities into one composite hybrid or by separating returns on an asset into classes.

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