ABSORPTION RATE
The a kind of rate wherein the available homes are sold to a particular real estate market within a given time period. The calculation of the rates is through the division of the total number of available homes by the sales per month's average number. The figure will show the number of months that it will take for the exhaustion of the market's supply of homes. A high absorption rate may be an indication that a rapid shrink of supply of the available homes is taking place thus increases the chance of selling a piece of property in a lesser period of time by a homeowner.
POPULAR TERMS
Capital Commitment
Future capital payments that a firm has pledged to pay out on long-term assets over a particular time period. This also talks about the securities ...
Overwithholding
A term which refers to an excess amount of tax being withheld for an employee. It will be sent back as a refund to the taxpayer after he or she fil ...
Diluted Earnings Per Share - Diluted EPS
It is the measure of a company’s profits.
Covenant
Promise a firm made to an indenture or other formal debt agreement, stating some activities will or won’t be carried out. In finance, it freq ...
Gross Spread
Difference between the security price paid by the underwriter and the actual price charged to the public. The spread compensates the underwriters o ...
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