2 Answers
Definition of 'Break-Even Analysis'
An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. This is the amount that revenues can fall while still staying above the break-even point.
http://www.investopedia.com/terms/b/breakevenanalysis.asp
12 years ago. Rating: 5 | |
In business, it's determining at what point you have recouped your (initial) investment to the point where you are not unprofitable nor profitable. It could apply to stocks also. Let's say you bought a stock at $10/ share but now it's $5/share. You would break even at $10 (excluding commissions, if there were any.)
12 years ago. Rating: 0 | |
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