Arrears: 1. The state of being delinquent in paying a debt. 2. At or after the end of the period for which expenses are due or levied, the opposite of in advance. Mortgage interest and real estate taxes are often paid in arrears.

 

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Arrears: A payment made after it is due is in arrears. Interest is said to be paid in arrears since it is paid to the date of payment rather than in advance, as is rent.

Dividend In Arrears: An approach that assumes dividends grow at a constant rate in perpetuity. The value of the stock equals next year's dividends divided by the difference between the required rate of return an . . . View Full Definition

Dividends In Arrears: Missed dividends for past years that preferred stockholders have a right to receive under the cumulative-dividend preference if and when dividends are declared.

Annuity In Arrears: An annuity with a first payment one full period hence, rather than immediately.

True Lease: For a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument o . . . View Full Definition

Forbearance: The act of refraining from taking legal action despite the fact that payment of a promissory note in a mortgage or deed of trust is in arrears. It is usually granted only when a borrower mak . . . View Full Definition

Prorations: Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing.

Cumulative-Dividend Preference: The rights of preferred stockholders to receive current dividends plus all dividends in arrears before common stockholders receive any dividends. current assets: Cash and other assets that m . . . View Full Definition