reserve
Definition 1
In asset-based lending, the difference between the value of the collateral and the amount lent. Also, funds set aside for emergencies or other future needs. In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders. From the point of view of financial statements, reserves are provided as an estimate of liabilities that have a good probability of arising, such as bad debt reserve attempts to estimate what percentage of the firm's creditors will not pay (based on previous records and practical experience). Reserves are always a subjective estimate (since they reflect contingent liabilities).
Definition 2
Funds set aside for emergencies or other future needs.
Definition 3
In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders.
In asset-based lending, the difference between the value of the collateral and the amount lent. Also, funds set aside for emergencies or other future needs. In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders. From the point of view of financial statements, reserves are provided as an estimate of liabilities that have a good probability of arising, such as bad debt reserve attempts to estimate what percentage of the firm's creditors will not pay (based on previous records and practical experience). Reserves are always a subjective estimate (since they reflect contingent liabilities).
Definition 2
Funds set aside for emergencies or other future needs.
Definition 3
In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders.
This content can be found on the following page:
reserve is ...
... part of the Lending & Credit subject.
... part of the Lending & Credit subject.
Related Terms
borrowed reserves, cash reserves, contingency fund, customer protection rule, draining reserves, multiplier effect, run, self insurance, valuation reserve, fractional reserve banking and
reserve appears in these other terms
short-term reserves, Federal Reserve Wire Network, excess reserves, Federal Reserve Note, Federal Reserve Discount Rate, Federal Reserve Board, required reserves
reserve appears in the definitions of these other terms on BusinessDictionary.com
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