Monday, August 24, 1998
It's the cost for services by various providers.
With commodities, it's the charge for carrying the actual commodity, including interest, storage and insurance costs.
For margin accounts, it is the fee that a broker charges for carrying securities on credit.
In real estate, carrying cost comprises interest and taxes of owning land prior to its development and resale.
In retailing, it is the seller's charge for installment credit, which is either added to the purchase price or to unpaid installments.
For inventory, carrying costs include charges for interest, taxes, insurance, obsolescence, depreciation and storage.
Have you seen an investment term you'd like to understand better? Write to Ursula Miller, The Cincinnati Enquirer, 312 Elm St., Cincinnati 45202. Phone: 768-8573.
