EXTENSION RISK Definition

Bookmark and Share

EXTENSION RISK, with mortgage-backed securities, is the risk that rising interest rates will slow the prepayment of underlying mortgages and extend the maturity.

Learn new Accounting Terms

GROSS MARGIN is the ratio of gross profit to sales revenue. (sometimes used as a synonym for gross profit). For a manufacturer, gross margin is a measure of a companys efficiency in turning raw materials into income; for a retailer it measures their markup over wholesale. GROSS MARGIN is gross income divided by net sales, expressed as a percentage.

PTI is Pretax Income.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.