What is Accretive?
The term "accretive" is commonly used in finance and investment contexts. It refers to a situation where an action or event contributes positively to the value or earnings of a financial asset, a company, or an investment portfolio. The opposite of accretive is "dilutive," which indicates a negative impact on value or earnings.
Accretive in Different Contexts
Example:
Consider a company that acquires another company at a price lower than its intrinsic value. If the acquisition leads to an increase in the acquiring company's earnings or cash flow per share, it is considered accretive. This is often seen as a positive outcome, as it indicates that the acquisition has contributed to the company's financial health and shareholder value.
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