Accretion

1. Asset growth through addition or expansion.

2. In reference to discount bonds, it describes the accumulation of value until maturity.



1. Accretion can occur through a company's internal development or by way to mergers and acquisitions.

2. Bonds at discount are sold below face value and mature at par. In the duration between the bond's issuance and maturity, no additional value is actually being accumulated within the bond but accretion occurs with the paper or implied capital gain.




Is Growth Always A Good Thing? - Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
Related Terms

Accretive Acquisition

Asset

Depreciation

Dilutive Acquisition

Discount Bond

Imputed Interest

Word Search:

Categories