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Breakeven |
Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson | 0.02 sec. |
Breakeven 1. The sales or revenues necessary to cover costs and prevent a firm from operating at a loss. The breakeven may be relatively stable or it may fluctuate, depending on the company or industry. Companies with high breakevens tend to have large fluctuations in earnings from year to year. 2. The price of a security, if one sells at it, that will result in neither a profit nor a loss on the sale. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations However, while breakeven inflation rates have certainly increased, they ate still a little below where they were a year ago. In the bond market, this news led to a rally in breakeven rates. |
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