Absorbed

Absorbed

1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices.

2. In underwriting, when an issue has been completely sold to the public.

3. In mergers, when an acquired firm is folded into the acquiring company.

Notes:

The meaning of "absorbed" is similar to the non-financial definition of the term.

See also: Direct Cost, Expense, Explicit Cost, Merger

---

Absorbed

Used in context of general equities. Securities are "absorbed" as long as there are corresponding orders to buy and sell. The market has reached the absorption point when further assimilation is impossible without an adjustment in price. See: Sell the book.