Accretive

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What is 'Accretive'

Accretive is 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.

BREAKING DOWN '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).

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RELATED FAQS
  1. What are some common accretive transactions?

    Find out about accretive transactions and how analysts determine whether or not an acquisition is accretive or dilutive by ... Read Answer >>
  2. How is the term 'accretive' used in fixed income investments?

    Find out how the word ''accretive'' can be used for fixed income investments that are issued at a discount, such as commercial ... Read Answer >>
  3. What is the difference between an accretive transaction and a dilutive transaction?

    Read about the differences between an accretive and dilutive financial transaction, particularly as it pertains to a mergers ... Read Answer >>
  4. What is the difference between an accretive and a dilutive merger?

    Learn how to distinguish between a merger and acquisition (M&A) deal that is accretive and one that is dilutive, and why ... Read Answer >>
  5. What is considered an accretive acquisition?

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