Investopedia

Continue to Site »

Asset Valuation Reserve - AVR

Filed Under » ,
Dictionary Says

Definition of 'Asset Valuation Reserve - AVR'

Capital required to be set aside in order to cover a company against unexpected debt. The asset valuation reserve serves as a backup for equity and credit losses. A reserve will have capital gains or losses credited or debited against the reserve account.
Investopedia Says

Investopedia explains 'Asset Valuation Reserve - AVR'

Usually the asset reserve consists of two components, a default component and an equity component. The default component protects future credit related losses, and includes arrangements for corporate debt securities, preferred stock, mortgage backed securities, farm, commercial and residential mortgages. For example, the National Association of Insurance Commissioners (NAIC) has to keep a liability reserve to cover claims in real estate and mortgages. The equity component has provisions for common stocks and real estate.

Articles Of Interest

  1.

    Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.

  2. A Look At Exit Strategies

    Setting appropriate exit points should help you avoid taking premature profits or running losses.

  3. Wall Street: Where The Customer Is Always Wrong

    In the financial industry, there's not much emphasis placed on dealing with customer complaints, but there should be.

  4. Predicting Investment Losses

    How much you stand to lose on an investment and how long those losses will last can be gauged ahead of time.

  5. Limiting Losses

    It is impossible to avoid them completely, but there is a systematic method you can use to control them.

  6. Guide To Embedded Options In Bonds

    Investors should be aware of embedded options that may be available in certain securities as these options may affect the value of the security.

  7. Visual Guide To Investing In Preferred Stock ETFs

    Preferred stock ETFs have become a big hit with some investors. Find out why!

  8. $1 Salaried CEOs Making Millions

    Some CEOs who are paid $1 annually are actually among the highest-paid when all forms of compensation are taken into account.

  9. How Will Your Investment Make Money?

    Discover the basic types of investment income and which asset classes pay them.

  10. How To Live Off Your Dividends

    One way to enhance your retirement income is to invest in dividend paying stocks and mutual funds.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center