basis

basis definition - business

basis

  1. In futures trading, the difference between the futures price and the spot price. The basis will narrow as a contract moves closer to settlement.
  2. In taxation, the acquisition cost of an asset adjusted for depreciation or capital distributions (that is, stock dividends). An asset's basis is used in calculating gains and losses for tax purposes. Also called cost basis, tax basis. See also adjusted basis.
  3. See stepped-up basis.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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