underwater

underwater definition - business

underwater

  1. Describing a loan in which the amount owed is greater than the value of the asset being used as collateral for the loan. For example, the market value of a home is less than the outstanding balance on the loan that financed the home's purchase.
  2. Of or relating to a stock option for which the option exercise price is higher than the market price of the stock.

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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