Holding value
≈ 1 min read
Names in other languages
No names in other languages are held for this entry yet.
Article bodies are English and are not machine-translated. A name in another language is not a translation of the article.
In the field of financial economics, Holding value is an indicator of a theoretical value of an asset that someone has in their portfolio. It is a value which sums the impacts of all the dividends that would be given to the holder in the future, to help them estimate a price to buy or sell assets.
In the field of financial economics, Holding value is an indicator of a theoretical value of an asset that someone has in their portfolio. It is a value which sums the impacts of all the dividends that would be given to the holder in the future, to help them estimate a price to buy or sell assets. {HV}_{[i,n]}=\sum_{k=0}^{n-i}\frac{div(i+k)}{{(1+r)}^{n-i-k}} where div = dividend r = interest rate (of the money if it is kept at the bank; e.g., 0.02 or 2%) i = the period at the beginning of the estimation n = the last period considered in the window of future dividends.
Text derived from https://en.wikipedia.org/w/index.php?oldid=1073989146 under CC BY-SA 4.0; modifications have been made.