InvestorWords.com

loan

Definition

An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).

Featured Tip

9 Signs of Potential Creative Accounting PracticesHere are nine things investors should watch for as possible warnings of accounting gimmickry:
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