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Investments often lead to a big expense and are therefore recognized in the balance sheet of a company. Investments (assets) often lead to (annual) depreciation costs such as the carry of an asset.
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∙ 10y ago
The carry of an asset refers to the net income or return generated by holding that asset. It can be positive if the income exceeds the cost of holding the asset (such as interest payments or dividends), or negative if the cost exceeds the income. In financial markets, carry trades involve borrowing in a low-interest rate currency to invest in a higher-yielding asset, profiting from the interest rate differential.
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