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Amortization

Arbitrage

Asset

Amortization. The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest.

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Arbitrage.  Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The ideal version is risk less arbitrage.

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Asset.  Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property.

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