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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Treasury Bill

A short-term debt instrument issued by the government to finance its budget. Treasury bills has usually no coupon attached to it.


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