Revolving credit

Definition:

Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit.

Revolving credit agreement
A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period.

Investing Essentials


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

Term of the Day

Stock split

Occurs when a firm issues new shares of stock and in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices. For example, if IBM trades at $100 before... Read More

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio