carrying cost

  

Definitions (4)

2. Finance, insurance, security, spoilage, storage, and other such charges associated with warehousing of goods.
3. Interest and lender imposed charges such as negotiation fee, processing fee, penalties, associated with a loan.
4. Interest and other charges associated with goods or services sold on credit. Also called carrying charge or holding cost.

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How to Structure Options

Options should be structured carefully. Absent special factors, they should have built into them a retained-earnings or carrying cost factor. Equally important, they should be priced realistically. Wh ... Read more

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