EATING STOCK Definition

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EATING STOCK is when an underwriter can't find buyers for a stock and therefore has to buy them for his own account.

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SOFT COSTS are those extraneous costs that are not readily foreseen or budgeted for, e.g. legal fees, loan fees and interest, etc.

REVERSE COST-BENEFIT METHOD is based on the short-cut rate of return formula and amounts to asking the question: given the cost of the investment, what level of annual benefits would produce a given rate of return (8 percent, for instance) on the investment?

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