Free rider

A person who chooses to receive the benefits of public goods or positive externalities without contributing to paying the costs of producing those benefits.

Similar financial terms

Tax free acquisition
A merger or consolidation in which (a) the acquirer's tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (b) each seller who receives only stock does not have to pay any tax on the gain he realizes until the shares are sold.

Risk-free rate
The rate earned on a riskless asset.

Risk-free asset
An asset whose future return is known today with certainty.

Freeports
Areas close to air and shipping ports into which imports are allowed without paying tariffs on the condition that they are exported.

Free market economy
A system where resources are owned by households: markets allocate resources through the price mechanism; and income depends upon the value of resources owned by an individual.

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Rate of interest

The rate, as a proportion of the principal, at which interest is computed.


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