Legacy Asset

Dictionary Says

Definition of 'Legacy Asset'


An asset that has been on the company's books for a long period of time. This type of asset has generally decreased in value to the point of a loss for the company. The term comes from the literal meaning of outdate or obsolete.

Investopedia Says

Investopedia explains 'Legacy Asset'


While these assets are generally considered a hinderance, it may be a good time to take another look at them in times of economic downturn. It is possible that they may have new value in a different time or economy. Conversely, it may also be a good time to sell the assets at a reduced price, simply to earn enough money to remain afloat during a recession.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center