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What are 'proceeds'?

Updated: 12/18/2022
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15y ago

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There are several different ways the word "proceeds" can be used. Proceeds are the value of land, goods or investments when converted into money or something else of value. Proceeds indicates a change in form of an asset. Proceeds can be the amount of money received from a sale. A more interesting example is provided in Black's Law Dictionary: If a farmer borrows money from a bank to plant wheat, giving the bank a security interest in the harvest, the harvested wheat is considered collateral. Alternatively, if the farmer exchanges some of the harvested wheat for a tractor, the tractor becomes the proceeds of the wheat.

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