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Cost Basis: The cost basis is the original price of an asset — usually the purchase price plus commissions. You use the cost basis to calculate capital gains and capital losses, depreciation, and return . . . View Full Definition

Adjusted Basis: The original cost basis of a property reduced by certain deductions and increased by certain improvement costs. The original basis determined at the time of acquisition is reduced by the amo . . . View Full Definition

Step-Up In Basis: When you inherit assets, such as securities or property, they are stepped-up in basis. That means the assets are valued at the amount they are worth when your benefactor dies, or as of the d . . . View Full Definition

Basis: Basis is the total cost of buying an investment or other asset, including the price, commissions, and other charges. If you sell the asset, you subtract your basis from the selling price to . . . View Full Definition

Historical Cost: Stocks of companies operating in high-technology fields.

Incremental Cost Of Capital: Difference between the firm's cash flows with and without a project.

Incremental Costs And Benefits: Average cost applicable to the issue of each additional unit of debt and equity.

Guaranteed Replacement Cost Coverage Insurance: A type of insurance policy that requires the insurer to renew the policy to an individual regardless of health changes. No changes may be made to an individual policyholder unless the same c . . . View Full Definition

Friction Costs: Piece of information (fundamental or technical) leading one to believe a stock will move in a certain manner.

Frictional Cost: Costs, both implied and direct, associated with a transaction. Such costs include time, effort, money, and associated tax effects of gathering information and making a transaction.