VEST / VESTING / VESTED Definition

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VEST / VESTING / VESTED, in law, is to give a secured right of present or future award. An entity has a vested right to an asset that cannot be taken away by a third party, even if physical possession of the asset has not yet been realized.

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CALL PREMIUM is a premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date.

ACTIVITY RATIO is any accounting ratio that measures a firms ability to convert different accounts within their balance sheets into cash or sales.

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