ac⋅cre⋅tion
[uh-kree-shuh
n]
| 1. | an increase by natural growth or by gradual external addition; growth in size or extent. |
| 2. | the result of this process. |
| 3. | an added part; addition: The last part of the legend is a later accretion. |
| 4. | the growing together of separate parts into a single whole. |
| 5. | Law. increase of property by gradual natural additions, as of land by alluvion. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
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Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Accretion
Ac*cre"tion\, n. [L. accretio, fr. accrescere to increase. Cf. Crescent, Increase, Accrue.]1. The act of increasing by natural growth; esp. the increase of organic bodies by the internal accession of parts; organic growth. --Arbuthnot. 2. The act of increasing, or the matter added, by an accession of parts externally; an extraneous addition; as, an accretion of earth. A mineral . . . augments not by grown, but by accretion. --Owen. To strip off all the subordinate parts of his as a later accretion. --Sir G. C. Lewis. 3. Concretion; coherence of separate particles; as, the accretion of particles so as to form a solid mass. 4. A growing together of parts naturally separate, as of the fingers toes. --Dana. 5. (Law) (a) The adhering of property to something else, by which the owner of one thing becomes possessed of a right to another; generally, gain of land by the washing up of sand or sail from the sea or a river, or by a gradual recession of the water from the usual watermark. (b) Gain to an heir or legatee, failure of a coheir to the same succession, or a co-legatee of the same thing, to take his share. --Wharton. Kent.Cite This Source
accretion
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Accretion
1. Asset growth through addition or expansion.
2. In reference to discount bonds, it describes the accumulation of value until maturity.
Investopedia Commentary
1. Accretion can occur through a company's internal development or by way to mergers and acquisitions.
2. Bonds at discount are sold below face value and mature at par. In the duration between the bond's issuance and maturity, no additional value is actually being accumulated within the bond but accretion occurs with the paper or implied capital gain.
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See also: Accretive Acquisition, Asset, Depreciation, Dilutive Acquisition, Discount Bond, Imputed Interest
Also spelled: accrete
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accretion
- The accumulation of capital gains on discount bonds with the expectation that the securities will be redeemed at maturity. Excluding municipals, the amount of annual accretion is taxable on an original-issue discount bond even though only a small amount of interest or no interest at all is paid each year. See also imputed interest.
Copyright © 2003. Published by Houghton Mifflin.
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Main Entry: ac·cre·tion
Pronunciation: &-'krE-sh&n
Function: noun
1 : the process or a result of growth or enlargement: as a : the increase or extension of the boundaries of land or the consequent acquisition of land accruing to the owner by the gradual or imperceptible action of natural forces (as by the washing up of sand or soil from the sea or a river or by a gradual recession of the water from the usual watermark); also : accession in which the boundaries of land are enlarged by this process —compare AVULSION, RELICTION b : increase in the amount or extent of any kind of property or in the value of any property <accretions to a trust fund resulting from the increase in value of…securities in which its corpus is invested —In re Estate of Gartenlaub, 244 Pacific Reporter 348 (1926)>
NOTE: Accretion in value of the principal of a trust is generally not considered income. c : enlargement of a bargaining unit by the addition of new employees
2 in the civil law of Louisiana : the passing to an heir or conjoint legatee of the right to accept a portion of a succession resulting from the failure of a coheir or colegatee to take his or her own share
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Main Entry: ac·cre·tion
Pronunciation: &-'krE-sh&n
Function: noun
: the process of growth or enlargement; especially : increase by external addition or accumulation (as by adhesion of external parts or particles) —compare APPOSITION 1,
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accretion ac·cre·tion (ə-krē'shən)
n.
- Growth or increase in size by gradual external addition, fusion, or inclusion.
- Increase by addition to the periphery of material of the same nature as that already present, as in the growth of crystals. Also called accrementition.
- Foreign material, such as plaque or calculus, collecting on the surface of a tooth or in a cavity.
- The growing together or adherence of body parts that are normally separate.
Copyright © 2002, 2001, 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
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accretion (ə-krē'shən) Pronunciation Key
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Copyright © 2002. Published by Houghton Mifflin. All rights reserved.
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