A:

The term "above water" is used to describe any situation in which the ending or current value of a subject is higher than its beginning or opening price.

In accounting, an asset with a value that has appreciated is said to be "above water" because the price at which it could be sold exceeds the price paid. In financial markets, the stock market is said to have stayed "above water" when it finishes higher than its previous close. In personal investing, one's trading positions are said to be "above water" when values remain above the price at which they were bought or when values fall below the price at which they were sold short. Finally, a company that remains financially viable occasionally may be referred to as being "above water".

Similarly, an asset, index or security is said to be "treading water" when its worth equals the approximate purchase price. Furthermore, an asset, index or security is said to be "below water" when its worth falls below the purchase price.

To read more on this subject, see The Hidden Value Of Intangibles.

This question was answered by Justin Bynum.

RELATED FAQS
  1. What is "marginalism" in microeconomics and why is it important?

    Find out what economists mean by marginal utility or cost and why marginalism is such an important concept in microeconomic ... Read Answer >>
  2. How can particular scarcities benefit specific stocks?

    Learn about scarce resources, such as crude oil and water. Explore how companies that produce these resources have benefited ... Read Answer >>
  3. What's the difference between the hurdle rate and the high water mark?

    Discover how hurdle rates and high water marks are used by hedge funds for calculating incentive or performance fees charged ... Read Answer >>
  4. How can marginal utility explain the 'diamond/water paradox'?

    Learn why a diamond is valued more highly than a bucket of water or why a professional athlete is valued more highly than ... Read Answer >>
  5. How strongly does government regulation impact the utilities sector?

    Read about the impact of government regulation on the utilities sector, particularly as is pertains to the water and electricity ... Read Answer >>
Related Articles
  1. Investing

    Water: The Ultimate Commodity

    Opportunities to invest in this scarce resource are flowing freely - dive in!
  2. Investing

    The Economic Effects of Water Shortages

    Raising water prices to dampen demand is a necessary approach to solving the world's water shortage.
  3. Investing

    Risks to Consider When Investing in Water

    Investing in water should be a lock. But water is volatile and could see as many risks as potential rewards.
  4. Investing

    In Focus: Water Scarcity

    After a discussion, sponsored by CDP, we share the importance of water disclosure as it relates to businesses operating amid increasing water scarcity.
  5. Investing

    Looking for Cost-Effective Ways to Save Water?

    There are lots of things you can do to save water at home while reducing your ecological footprint at the same time. Here are five simple ways to do it.
  6. Investing

    This ETF Offers New Way to Invest in Water (WTRX)

    A new ETF tracking water has entered the investing landscape.
  7. Investing

    Top ETFs, Mutual Funds for Investing in Water (PHO, PIO)

    The nation's water supply is declining as demand is increasing. This presents an investment opportunity, just mind your liquidity.
  8. Investing

    Should Water Be Privatized?

    Could water privatization mean lower costs, greater efficiency and higher quality compared to public sector providers? A look at the evidence so far.
  9. Investing

    WaterSense: Saving Water And Money

    With a few simple updates, you could be saving on your annual water expenses.
  10. Financial Advisor

    How Procter and Gamble Plans to Deliver 15 Billion Liters of Clean Water by 2020 (PG)

    Learn how Procter & Gamble plans to deliver 15 billion liters of clean drinking water by 2020 through its Children's Safe Drinking Water program.
RELATED TERMS
  1. Above Water

    1. Refers to the condition of a company's asset when its actual ...
  2. Produced Water

    Waste water generated during the production of oil and natural ...
  3. Water ETF

    An exchange-traded fund that invests in companies operating in ...
  4. Water Quality Improvement Act Of 1970

    Legislation that expanded the federal government's authority ...
  5. Palisades Water Index

    A stock market index that gauges the performance of global water ...
  6. Watered Stock

    Stock that is issued with a value much greater than the value ...
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center