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1. Describing information that is or may be relevant for a firm's operations. For example, if a VCR company is experiencing a dearth of demand because most of its potential customers are buying DVD players, this is material information that will likely need to be disclosed to shareholders. See also: Immaterial.

2. Raw substances that a company uses to make its product. For example, an oil refinery's material is crude oil, which it makes into refined oil.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Of sufficient importance or relevance as to have possible significant influence on an outcome. For example, the possibility that a firm might lose its right to operate a number of television stations because competitors have filed with the Federal Communications Commission for those licenses would be a material fact in preparing the firm's financial statements. Compare immaterial.
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.
References in periodicals archive ?
Any material passing through the affected zone is potentially vulnerable to degradation.
* each raw material shall have a "specification sheet" detailing key material characteristics, product form, packaging form and any other specific requirements;
2, An Audit of Internal Control Over Financial Reporting in Conjunction with An Audit of Financial Statements, says when the auditor identifies a material misstatement in the current-period financial statements that was not initially identified by the company's internal control over financial reporting, it is a strong indicator of a material weakness--even if management subsequently corrects the misstatement.
When analyzing a scrap yard's material handling operations, recyclers should consider that electric-powered machines can be mounted on crawler undercarriages.
* Develop and investigate novel materials with enhanced properties (e.g., films, coatings, fillers, matrices, pigments, additives, and fibers--especially lignocellulosic nanofibrils.
Huang's silicon-containing material is riddled with pores just 50 nm in diameter.
By the middle of the nineteenth century, new forms of mechanical production and bulk transport (canals, then railways) radically altered the availability of materials, allowing Welsh slates and Italian marble.
For a maxillary tray, it is recommended that the material be loaded from the posterior area of the tray.
Both Loos and Judd wanted to show materials themselves in all their glory as emblems of moral honesty and rightness.
The important distinction in a forensic definition of soil appears in the sampling of earth material, either accidentally or deliberately.
* Descriptive--describing the content, indexing the material, etc.
Class I covers removal of thermal insulation or surface material, such as sprayed-on fireproofing.