Accretion - Definition

Refers to an increase in the value of asset through addition or expansion. Accretion can occur in a company through internal development or by means of mergers and acquisitions.

1. Accretion is referred to the change in the price of a bond at the time of Maturity which was bought at a discount.

2. Bonds at discount are sold below Face Value and mature at Par. Actually during the period of 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.

Terms near "Accretion"

Accrual basis accounting
Accrual bond
Accrual of discount
Accrual Swap
Accrued benefit
Accrued dividend
Accrued expense
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