What Is an Adverse Action? In finance, the term “adverse action” refers to a type of notice given by a lender when a borrower’s credit application has been denied. They are typically delivered within seven to 10 business days following the decision to deny the loan application, usually in writing, although they may be communicated
What Is an Adverse Credit History An adverse credit history is a track record of poor repayment history on one or more loans or credit cards. Adverse credit history will be reflected in a consumer’s credit report. It will lower their credit score and make it more difficult to get a loan or credit card
What is a Adversely Classified Asset An adversely classified asset is a type of loan classification in which the loan or other asset is considered, to some degree, to be impaired. It is an asset that is considered by bank examiners to be of substandard credit quality and whose full repayment of principal and accrued
What Is an Adverse Opinion? An adverse opinion is a professional opinion made by an auditor indicating that a company’s financial statements are misrepresented, misstated, and do not accurately reflect its financial performance and health. Adverse opinions are usually given after an auditor’s report, which can be internal or independent of the company. Key Takeaways
What Is Adverse Possession? The term “adverse possession” refers to a legal principle that grants title to someone who resides on or is in possession of another person’s land. The property’s title is granted to the possessor as long as certain conditions are met including whether they infringe on the rights of the actual owner
What Is Adverse Selection? Adverse selection refers generally to a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality. In other words, it is a case where asymmetric information is exploited. Asymmetric information, also called information failure, happens when one party to a transaction has
What Is an Advertised Price? An advertised price is the price of a product or service as displayed or announced in a print, radio, television, or online advertisement. If the advertised price is well below the normal price of a product, it is likely to be a loss-leader that is priced to entice customers into
What Is an Advertising Allowance? An advertising allowance is money that a product manufacturer or service provider pays to a retailer to get the word out about their product. An advertising allowance may also take the form of a supplier or manufacturer giving a discount on inventory provided to a wholesaler or retailer to pay for advertising
What Is Advertising Elasticity of Demand (AED)? Advertising elasticity of demand (AED) measures a market’s sensitivity to increases or decreases in advertising saturation. Advertising elasticity measures an advertising campaign’s effectiveness in generating new sales. It is calculated by dividing the percentage change in the quantity demanded by the percentage change in advertising expenditures. A positive
What Is the Advertising-To-Sales Ratio? The advertising-to-sales ratio, also known as the “A to S,” is a measurement of the effectiveness of a company’s advertising campaign. It can be used to measure the effectiveness of a specific product launch or of a broader policy, rebranding, or new direction in business. Key Takeaways The advertising-to-sales ratio
