Accretive

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Dictionary Says

Definition of 'Accretive'

The process of accretion, which is the growth or increase by gradual addition, in finance and general nomenclature. An acquisition is considered accretive if it adds to earnings per share.
Investopedia Says

Investopedia explains 'Accretive'

In corporate finance, accretive acquisitions of assets or businesses will add more value than the cost of the acquisition, either immediately or over time. In fixed-income investments, the term refers to the increase in value attributable to interest accrued but not paid (discounted bonds, for example, earn interest through accretion until maturity).

Related Definitions

  • Accretion

    1. Asset growth through addition or expansion. 2. In reference to discount bonds, it describes the accumulation of value until maturity.
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  • Accretion of Discount

    The increase in the value of a discounted instrument as time passes and it approaches maturity. The value of the instrument will accrete (grow) at the interest rate implied by the ...
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  • Accreted Value

    The value, at any given time, of a multi-year instrument that accrues interest but does not pay that interest until maturity. The most well-known applications include zero-coupon bonds ...
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    • Accretive Acquisition

      An acquisition that will increase the acquiring company's earnings per share (EPS). These acquisitions tend to be favorable for the company's market price because the price paid by the ...
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    • Compound Accreted Value - CAV

      A measure of the theoretical value of a zero-coupon bond at any given point in time. Because there are no interest payments like there are with traditional bonds, the interest of a ...
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