Amortization
Definition
The gradual write-off of an intangible asset's cost over its useful life, or the repayment of debt through regular installments.
Explanation
In accounting, amortization spreads the cost of intangible assets (patents, trademarks, goodwill from acquisitions) over their useful life. A company that acquires a patent for $10M with a 10-year life records $1M in amortization expense annually. In lending, amortization refers to the schedule of principal and interest payments that fully repay a loan by maturity.
How Stoquity Uses This
Stoquity incorporates amortization analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.