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:
“Will not a tiny speck very close to our vision blot out the glory of the world, and leave only a margin by which we see the blot? I know no speck so troublesome as self.”
—George Eliot [Mary Ann (or Marian)
“The Declaration [of Independence] was not a protest against government, but against the excess of government. It prescribed the proper role of government, to secure the rights of individuals and to effect their safety and happiness. In modern society, no individual can do this alone. So government is not a necessary evil but a necessary good.”
—Gerald R. Ford (b. 1913)