NET PROCEEDS Meaning and
Definition
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Net proceeds is a financial term that refers to the amount of money remaining after all expenses, taxes, and fees associated with a transaction or sale have been deducted. It represents the actual profit or revenue earned from the sale or transaction.
In the context of business or investments, net proceeds represent the funds received by an individual or entity after all costs and deductions related to the transaction have been accounted for. These costs may include production or manufacturing costs, shipping and handling fees, advertising expenses, sales commissions, and other overhead expenses. Additionally, taxes and any outstanding debts may also be subtracted from the gross proceeds to determine the net proceeds.
The concept of net proceeds is commonly used in real estate transactions, fundraising events, auctions, and stock offerings. For example, in a real estate sale, the net proceeds would be the amount of money the seller receives after subtracting the real estate agent's commission, closing costs, and any outstanding mortgage balances. In an auction or fundraising event, net proceeds would refer to the amount of money generated by the event after deducting any expenses incurred in organizing and hosting it.
Net proceeds provide a clear and concise measure of the actual financial gain or profit obtained from a given transaction, allowing individuals and organizations to evaluate the overall success of their endeavors.
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The amount or sum which goods produce after every charge is paid.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for NET PROCEEDS
- bet proceeds
- met proceeds
- jet proceeds
- het proceeds
- nwt proceeds
- nst proceeds
- ndt proceeds
- nrt proceeds
- n4t proceeds
- n3t proceeds
- ner proceeds
- nef proceeds
- neg proceeds
- ney proceeds
- ne6 proceeds
- ne5 proceeds
- net oroceeds
- net lroceeds
- net -roceeds
- net 0roceeds
Etymology of NET PROCEEDS
The word "net" comes from the Old English word "nett" which means "clean, pure, free from tangles or knots". It can also refer to something remaining after deductions have been made. In financial context, "net" is often used to indicate the remaining amount after all expenses, deductions, or reductions have been accounted for.
The word "proceeds" comes from the Old French word "proceder" which means "to go forward, to advance". It later developed into Middle English as "procede", meaning "to move forward, to come forth". In modern usage, "proceeds" commonly refers to the money or assets that are obtained from the sale of something or from an event, after any expenses have been subtracted.
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