Nonproductive loan

Definition:

A loan that increases spending power, but is used in business that does not directly increase the economy's output, such as a leveraged buyout loan.

Investing Essentials


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

Term of the Day

Fully depreciated

An asset that has already been charged with the maximum amount of depreciation allowed by the IRS for accounting purposes.

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