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amortization


Definitions (2)

 1. The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest.

2. Writing off an intangible asset investment over the projected life of the assets.

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Don't Forget About Deprecation ChargesInvestors are often led astray by CEOs and Wall Street analysts who equate depreciation charges with amortization charges. In no way are the two the same: With rare exceptions, depreciation is an econ ... Read more


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