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asset/liability management

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Financial Dictionary

Asset/Liability Management

A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management."

Investopedia Commentary

By managing a company's assets and liabilities, executives are able to influence net earnings, which may translate into increasing stock prices.

Related Links

Introduction to Fundamental Analysis
Advanced Financial Statement Analysis

See also: Asset, Liability, Net Earnings, Return

Also spelled: ALM

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