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:
“Everything that explains the world has in fact explained a world that does not exist, a world in which men are at the center of the human enterprise and women are at the margin “helping” them. Such a world does not exist—never has.”
—Gerda Lerner (b. 1920)
“If we can find a principle to guide us in the handling of the child between nine and eighteen months, we can see that we need to allow enough opportunity for handling and investigation of objects to further intellectual development and just enough restriction required for family harmony and for the safety of the child.”
—Selma H. Fraiberg (20th century)