Wasting Asset

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Dictionary Says

Definition of 'Wasting Asset'

An item that irreversibly declines in value, as a function of time. Wasting assets include vehicles, machinery and other fixed assets. Accountants attempt to quantify the amount that assets decrease in value over time, by assigning depreciation schedules to wasting assets, therefore, recognizing the decrease in value each year.
Investopedia Says

Investopedia explains 'Wasting Asset'

In investing, options are the most common type of wasting asset. An option's value has two components: a time value and an intrinsic value. As the option's expiration date nears, the time value of the option gradually declines to zero. At expiration, an option is worth only its intrinsic value. Nonetheless, wasting assets are usually of a physical nature and experience price erosions as time passes.

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'Wasting Asset'

  • Penn Virginia Still A Solid Resource Income Play

    http://stocks.investopedia.com/stock-analysis/2011/Penn-Virginia-Still-A-Solid-Resource-Income-Play-PVR-BTU-ANR-WLT-ARLP-NRP-ACI0804.aspx
    ... Distributing and Reinvesting Penn Virginia is no wasting asset. The company
    offers a better dividend yield than Alliance Resource ...

  • Tips For Series 7 Options Questions

    http://www.investopedia.com/articles/professionaleducation/06/Series7Options.asp
    ... On Calls.). Time Value for Buyers and Sellers Because an option has a definite
    expiration date, the time value of the contract is often called a wasting asset. ...

  • Options Greeks: Options and Risk Parameters | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks1.asp
    ... As soon as you own an option (a wasting asset), the clock starts ticking, and with
    each tick the amount of time value remaining on the option decreases, other ...

  • Oil Companies With High Reserve-Replacement Ratios

    http://stocks.investopedia.com/stock-analysis/2009/Oil-Companies-With-High-Reserve-Replacement-Ratios-CRZO-UPL-XOM-GDP1012.aspx
    ... The higher the reserve-replacement ratio the better because an exploration and
    production company is a wasting asset that will eventually disappear if its ...

  • Roche Needs A Shot Of Adrenalin

    http://stocks.investopedia.com/stock-analysis/2010/Roche-Needs-A-Shot-Of-Adrenalin-RHHBY-ABT-BEC-ILMN-LIFE1018.aspx
    ... True, there is the occasional "wasting asset" stock that is worth more than its
    current price, but most operating companies need some reasonable amount of ...

  • Leave Campbell Soup On The Shelf For Now

    http://stocks.investopedia.com/stock-analysis/2011/Leave-Campbell-Soup-On-The-Shelf-For-Now-CPB-GIS-THS-K-KFT-WMT-TGT0902.aspx
    ... On the other hand, this company is not a wasting asset and shareholders should want
    to see some reasonable growth (over the long term) to maintain that dividend ...

  • Options Risk Graphs: Visualizing Profit Potential

    http://www.investopedia.com/articles/optioninvestor/05/012605.asp
    ... $500. But an option is a wasting asset. For every day that passes, an option
    is worth a little less (all else being equal). That ...

  • Surveying Single Stock Futures

    http://www.investopedia.com/articles/optioninvestor/06/SingleStockFutures.asp
    ... The Price of Investing: When an options investor takes a long position, he or she
    pays a premium for the contract. The premium is often called a wasting asset. ...

  • Oil Rules

    http://stocks.investopedia.com/stock-analysis/2009/Oil-Rules-OXY-CHK-NOG-BEXP-KOG1028.aspx
    ... of a huge new field in the middle of one of the most mature oil producing areas
    of the US last quarter and is not wasting any time developing this asset. ...

  • Government Bank Bailouts Paying Off

    http://stocks.investopedia.com/stock-analysis/2009/Government-Bank-Bailouts-Paying-Off-C-NTRS-GS-MS-AXP0902.aspx
    ... Bottom Line The conventional wisdom was that the government was wasting its money ...
    writer and has previous experience working in the asset management industry ...

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