ACCRETIVE Meaning and
Definition
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Accretive is an adjective that refers to a financial concept and is commonly used in business and economics. It describes a situation in which a certain addition or acquisition brings positive value and contributes to the overall growth or increase in value of a company or investment.
In the context of mergers and acquisitions, for example, when a company acquires another company and the value of the combined entity increases, the merger is said to be accretive. This means that the acquisition has resulted in a higher overall value for the acquiring company, either through increased revenues, cost synergies, or operational efficiencies.
In investment terms, an accretive investment refers to an investment that increases the value of an existing portfolio or asset. This could be through capital appreciation, dividend income, or interest payments.
An accretive transaction is regarded as favorable because it adds value to the business or portfolio, resulting in increased profitability, growth potential, or shareholder value. Conversely, a dilutive transaction is one that decreases value.
Overall, the term accretive is used to describe a positive impact or addition that enhances the value and growth potential of a company or investment, often leading to improved financial performance and increased shareholder wealth.
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Growing by external additions.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for ACCRETIVE
Etymology of ACCRETIVE
The word "accretive" is derived from the verb "accrete", which entered English in the mid-18th century from the Latin word "accretus". "Accretus" is the past participle of the Latin word "accrecere", meaning "to grow, increase, or adhere to". The Latin term itself is a combination of the prefix "ad-" (meaning "to") and the verb "crecere" (meaning "to grow"). Therefore, "accretive" essentially means "relating to growth or increase", particularly in the context of business or finance.
Similar spelling words for ACCRETIVE
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