carrying charges

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Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.

carrying charges

1. The cost of owning and storing a commodity during a period of time. This cost influences the difference between the futures price and the expected future spot price.

2. See cost of carry.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

carrying charges

Costs incurred in owning property up until completion of a development, as opposed to the actual development expenses themselves.Carrying charges must be capitalized and then amortized, or expensed, over the next 10 years as tax deductions. Examples include interest accrued on development loans,and property taxes.

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As long as those buying incentives can be maintained, increased of equipment purchase carrying charges will be held in check.

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Such costs, together with certain other expenses related to the development and operations of timber properties, are termed "carrying charges."

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The agency cited the extremely strong market value per capita, the city's very diverse tax base, very strong available fund balance, and low debt service carrying charges as the main propellers of the upgrade.

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He predicted that interest rates and the availability of credit will influence would-be buyers more than increasing carrying charges.