Advertising

Opportunity cost

• The difference in the performance of an actual investment and a desired investment adjusted for fixed costs and execution costs. The performance differential is a consequence of not being able to implement all desired trades. Most valuable alternative that is given up.

• Cash flows that could be realized from the best alternative use of an owned asset.

• The cost of pursuing one course of action measured in terms of the foregone return offered by the most attractive alternative.

 
 

Follow this link for all the terms related to cost.

 
 Embedded terms in definition
 Asset
Cash flow
Cash
Execution costs
Execution
Fixed cost
Return
 
 Related Terms
 

<< Opinion shopping Opportunity cost of capital >>

Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

Always bear in mind that your own resolution to success is more important than any other one thing. - Abraham Lincoln

Advertising



Copyright 2009-2019 GVC. All rights reserved.