Adjusted basis


 

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Adjusted basis

Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for.



Adjusted basis

Similar Matches

Risk adjusted return

Risk adjusted return

Often we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha, which is also risk-adjusted performance.


Risk adjusted discount rate

Risk adjusted discount rate

The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.


Adjusted exercise price

Adjusted exercise price

Term used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield.


Adjusted earnings

Adjusted earnings

If a company's earnings figures are distorted either positively or negatively by exceptional one-off occurrences in the year, its directors can choose to clarify the performance by releasing adjusted earnings. In other words, earnings with the exceptional items stripped out which they believe are more representative of its underlying performance.


Risk adjusted profitability

Risk adjusted profitability

A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.


Further Suggestions

Adjusted balance method
Seasonally adjusted
Adjusted for inflation
Net adjusted present value
adjusted gross income
Adjusted Gross Income
Inflation adjusted
Adjusted present value (APV)
Adjusted gross income (AGI)
Risk adjusted return
Adjusted debit balance (ADB)


 
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