Absolute Interest

AAA

DEFINITION of 'Absolute Interest'

Total and complete ownership of an asset or property. An individual with an absolute interest has both a legal and beneficial possession of said asset or property. The term "absolute interest" indicates that the owner's interest is not diluted by another party's ownership, nor is it dependent on conditions that must be fulfilled.

INVESTOPEDIA EXPLAINS 'Absolute Interest'

An absolute interest in an asset or property gives the owner full entitlement to the benefits and privileges that accrue from such ownership. It is the opposite of a contingent interest, which confers an ownership interest only upon the fulfillment of certain conditions or the occurrence of specific circumstances.

RELATED TERMS
  1. Contingent Shares

    Shares of company stock that are issued only if certain conditions ...
  2. Contingent Asset

    An asset in which the possibility of an economic benefit depends ...
  3. Vested Interest

    1. The lawful right of an individual or entity to gain access ...
  4. Contingent Beneficiary

    1. A beneficiary specified by an insurance contract holder who ...
  5. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
  6. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
Related Articles
  1. To Rent Or Buy? The Financial Issues
    Home & Auto

    To Rent Or Buy? The Financial Issues

  2. Knowing Your Rights As A Shareholder
    Investing Basics

    Knowing Your Rights As A Shareholder

  3. What Owning A Stock Actually Means
    Investing Basics

    What Owning A Stock Actually Means

  4. Keeping An Eye On The Activities Of ...
    Options & Futures

    Keeping An Eye On The Activities Of ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center