Commercial Year

DEFINITION of 'Commercial Year'

A commercial year is a 360 day year composed of 12 months with each lasting 30 days. The commercial year adjusts for differences in the number of days in each calendar month, making it easier to track changes in a business.

BREAKING DOWN 'Commercial Year'

A common application for using a commercial year can be found in the retail sector. If a manager wishes to understand changes in the revenues of stores from month to month, using a calendar year may obscure economic reality. For example, sales for January could be higher than sales in February simply because there are more days in January than in February. Thus, a manager would prefer to see results in 30 day increments to evaluate the true extent of any change in business.

RELATED TERMS
  1. Commercial

    Relating to commerce. In the investment field, the term "commercial" ...
  2. Commercial Code

    Private and public laws that regulated how commerce is to be ...
  3. Commercialization

    The process by which a new product or service is introduced into ...
  4. Commercial Investment

    An investment in a for-profit enterprise involved in the buying ...
  5. Commercial Property Insurance

    Insurance that is used to cover any type of commercial property. ...
  6. Commercial Well

    Any oil or gas drilling site that produces enough oil or gas ...
Related Articles
  1. Managing Wealth

    Introduction To Commercial Paper

    Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return on their money.
  2. Personal Finance

    The Reality of Commercial Real Estate Loans

    It’s corporations and partnerships that most commonly take out commercial real estate loans.
  3. Markets

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...
  4. Markets

    Commercial Paper

    Commercial paper is a short-term debt security issued by financial companies and large corporations. The corporation promises the buyer a return, or profit, for making the loan. The return is ...
  5. Managing Wealth

    Commercial Real Estate Agent: Career Path & Qualifications

    Learn about the qualifications, skills and licensing requirements to be a commercial real estate agent and how to get started in this career path.
  6. Personal Finance

    Commercial Real Estate: How to Invest Like a Pro

    Investing in commercial real estate can add stability to your portfolio. Here's how to do it.
  7. Managing Wealth

    Career Advice: Investment Banking Vs. Commercial Banking

    Read an in-depth review of the differences between a career in investment banking and a career in commercial banking, including how to decide between them.
  8. Managing Wealth

    Commercial Real Estate Agent: Job Description & Average Salary

    Learn more about the qualifications, daily and regular responsibilities, and average yearly salaries of commercial real estate agents.
  9. Markets

    What's Ahead for U.S. Commercial Banks (WFC, JPM)

    U.S. commercial banks should benefit from higher interest rates, but anxiety about worldwide economic growth has generated active selling pressure.
  10. Managing Wealth

    Commercial Real Estate Loans

    Obtaining a commercial real estate loan is quite different from borrowing for residential real estate. Here's what to expect and how to get what you need.
RELATED FAQS
  1. How can retail investors invest in commercial paper?

    Find out how individual retail investors can purchase short-term commercial paper, but why it rarely makes good investment ... Read Answer >>
  2. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  3. Can retail investors buy commercial paper?

    Find out whether retail investors buy commercial paper, and learn about the restrictions that often prevent individual investors ... Read Answer >>
  4. Can a business ever be too small to issue commercial paper?

    See why market forces regulate the size of companies that issue commercial paper, even though there are no official regulations ... Read Answer >>
  5. What happens when a company defaults on its commercial paper obligations?

    Read about the possible consequences of a large corporation defaulting on its commercial paper obligations even though the ... Read Answer >>
  6. How do investment banks help the economy?

    Learn more about the functions of investment banks in a modern economy and how investment banks have been treated differently ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center