Amortization

(1) A broad term incorporating any non-cash charge to earnings and/or asset values, such as depreciation, depletion, write-offs of intangibles, prepaid expenses, and deferred charges. (2) A decline in a number such as the notional or face value of a contract or, less frequently, a rate. See, for example, Index Amortizing Note.

© Copyright 1996, 1999 Gary L.Gastineau. First Edition.
© 1992 Swiss Bank Corporation.