reserve

Definitions (3)

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).
2. Funds set aside for emergencies or other future needs.
3. In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders.

Use reserve in a sentence

We made sure to reserve a table for our party, so we would not show up and not have a place to sit.

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Typically when I go out to eat, I do not dine anywhere that I would have had to reserve a table beforehand.

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You should always keep some cash in reserve in case you have a great opportunity to make a purchase right thne.

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