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What Is a Carrying Broker? A carrying broker is a brokerage firm that provides back-office support for other brokers. Examples of such support include ensuring regulatory compliance, recording and distributing client documents, and monitoring credit risk for margin accounts. Key Takeaways Carrying brokers provide back-office support for other brokerage firms, freeing their clients to focus

What Is a Carrying Charge? A carrying charge is a cost associated with holding a physical commodity or financial instrument. Examples of carrying charges include insurance costs, storage costs, and interest charges on borrowed funds. These costs are also sometimes referred to as an investment’s cost of carry. Since carrying charges increase the cost of

What Is a Carrying Charge Market? In a carrying charge market, the futures price of a commodity is higher than its spot price because of the costs—or “carrying charges”—associated with physically storing that commodity.  In these markets, one can approximate the likely futures price of a commodity by taking its spot price and adding its

What Is Inventory Carrying Cost? Inventory carrying cost, or holding costs, is an accounting term that identifies all business expenses related to holding and storing unsold goods. The total carrying costs include the related costs of warehousing, salaries, transportation and handling, taxes, and insurance as well as depreciation, shrinkage, and opportunity costs. Key Takeaways Inventory

What Are Carrying Costs? Carrying costs, also known as holding costs and inventory carrying costs, are the costs a business pays for holding inventory in stock. A business can incur a variety of carrying costs, including taxes, insurance, employee costs, depreciation, the cost of keeping items in storage, the cost of replacing perishable items, and

What Is Carrying Value? Carrying value is an accounting measure of value in which the value of an asset or company is based on the figures in the respective company’s balance sheet. For physical assets, such as machinery or computer hardware, carrying cost is calculated as (original cost – accumulated depreciation). If a company purchases