ROLLING OVER Meaning and
Definition
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Rolling over refers to the action of extending the maturity or duration of a financial instrument, such as a loan or a bond, by converting it into a new obligation. This term is commonly used in the context of loans, where borrowers may be allowed to prolong the repayment period by replacing the existing loan with a new one. In this process, the outstanding balance of the original loan is transferred to the new loan, usually with revised terms and conditions.
The concept of rolling over is also applicable to bond investments. When a bond matures, investors have the option to reinvest the principal amount into a new bond offering similar terms. By doing so, investors can maintain their exposure to the bond market while potentially securing a new interest rate or yield. This rollover process can be advantageous as it allows investors to maintain the continuity of their investments without incurring any significant disruptions or having their funds idle.
Furthermore, rolling over can refer to the act of converting one type of retirement savings account into another, such as rolling over a 401(k) into an Individual Retirement Account (IRA). This provides individuals with more control over their retirement savings and enables them to enjoy potential tax benefits or investment flexibility.
Overall, rolling over involves the renewal or conversion of a financial instrument or retirement account, allowing individuals or institutions to extend the duration, reinvest, or change the terms of an existing obligation.
Common Misspellings for ROLLING OVER
- eolling over
- dolling over
- tolling over
- 5olling over
- 4olling over
- rilling over
- rklling over
- rllling over
- rplling over
- r0lling over
- r9lling over
- rokling over
- ropling over
- rooling over
- rolking over
- rolping over
- roloing over
- rollung over
- rolljng over
- rollkng over
Etymology of ROLLING OVER
The term "rolling over" has a literal origin, referring to the action of shifting one's body from one side to another while lying down. It comes from the combination of two words:
1. "Roll" - This word derives from the Old English word "rollian", meaning "to turn round and round". It has Germanic roots and is related to the Middle Dutch word "rollen" and the Old High German word "rollen", both signifying similar actions of circular movement.
2. "Over" - This word stems from Old English "ofer", which means "above" or "across". It is of Germanic origin and shares roots with the Dutch word "over" and the German word "über", among others.
When these words are combined, "rolling over" describes the action of turning from one side to the other, often used to describe the movement of a person or an animal.
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