Accretion is an increase in the value of an asset as a result of a physical change, such as a growing crop, rather than due to a change in its market price. It describes the natural growth or incremental increase in the value of an asset.
Appreciation refers to an increase in the value of an asset over time, which can result from various factors such as inflation, a rise in market price, or interest earned. This term is essential for understanding the financial dynamics related to assets and currency values.
Asset stripping involves acquiring a company whose share price is undervalued relative to its asset value, selling its assets for profit, typically at the expense of other stakeholders.
The total value of a company's assets less its liabilities, divided by the number of ordinary shares in issue. This represents the theoretical amount attributable to each share if the company was wound up.
Equity represents a beneficial interest in an asset, net asset value, or shareholders' interest in a company. It is a critical component in personal finance, corporate finance, and accounting.
Understanding the Importance of Going-Concern Value in Assessing a Company's Operating Worth.
Net asset value (NAV) represents a company's or mutual fund's per-share value, calculated by dividing the total value of assets minus total liabilities by the number of shares outstanding. It's an essential metric for investors to gauge the value of an individual share relative to its underlying assets.
Tax basis refers to the value used for tax purposes to determine the gain or loss on the sale or transfer of an asset, and it includes various adjustments over time.
Written-down value (WDV) is the value of an asset for tax purposes after accounting for reduction in value below the initial cost due to its use in trade. It indicates the remaining value of the asset after appropriate capital allowances.
