EAC

Equivalent annual cost. The net present value (NPV) of cost divided by an annuity factor that has the same life as the investment

Similar financial terms

Each way
On both purchase and disposal, as of a broker's commission.

Reaction
A decline in prices following an advance. Opposite of rally.

Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movement in stock prices followed by corrections.

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Bankruptcy risk

The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.


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