cost of carry

cost of carry definition - business

cost of carry

Direct costs to maintain an investment position. For example, an individual purchasing securities on margin must pay interest expenses on borrowed funds. Also called carrying charge.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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