CAPITALIZED INTEREST Definition

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CAPITALIZED INTEREST is the accrued interest added to the principal balance of a loan while you are not making payments or your payments are insufficient to cover both the principal and interest due. When this occurs, you are paying interest on interest, sometimes called "negative amortization".

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MANAGEMENT BUY-OUT is the purchase of a company by its management; usually with the backing of outside investors.

COGM is Cost Of Goods Manufactured. See COST OF GOODS SOLD.

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