Margin Of Safety (financial)
Margin of safety (safety margin) is the difference between the intrinsic value of a stock and its market price.
Another definition: In Break even analysis (accounting), margin of safety is how much output or sales level can fall before a business reaches its breakeven point.
Read more about Margin Of Safety (financial): History, Application To Investing, Application To Accounting, Rare Book, Formula
Famous quotes containing the words margin and/or safety:
“I love a broad margin to my life.”
—Henry David Thoreau (1817–1862)
“Perhaps having built a barricade when you’re sixteen provides you with a sort of safety rail. If you’ve once taken part in building one, even inadvertently, doesn’t its usually latent image reappear like a warning signal whenever you’re tempted to join the police, or support any manifestation of Law and Order?”
—Jean Genet (1910–1986)