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DEFINITION of 'Accretive'

The process of accretion, which is the growth or increase by gradual addition, in finance and general nomenclature. An acquisition is considered accretive if it adds to earnings per share.


In corporate finance, accretive acquisitions of assets or businesses will add more value than the cost of the acquisition, either immediately or over time. In fixed-income investments, the term refers to the increase in value attributable to interest accrued but not paid (discounted bonds, for example, earn interest through accretion until maturity).

  1. Compound Accreted Value - CAV

    A measure of the theoretical value of a zero-coupon bond at any ...
  2. Accretive Acquisition

    An acquisition that will increase the acquiring company's earnings ...
  3. Accreted Value

    The value, at any given time, of a multi-year instrument that ...
  4. Accretion

    1. Asset growth through addition or expansion. 2. In reference ...
  5. Accretion of Discount

    The increase in the value of a discounted instrument as time ...
  6. Interest

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