Absorbed

1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices.

2. In underwriting, when an issue has been completely sold to the public.

3. In mergers, when an acquired firm is folded into the acquiring company.



The meaning of "absorbed" is similar to the non-financial definition of the term.



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Related Terms

Direct Cost

Expense

Explicit Cost

Merger

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