opportunity cost

opportunity cost definition - finance
The cost of pursuing one opportunity or action, measured by what had to be given up in the course of choosing that opportunity. For example, opportunity cost may be not having the money to make an alternative investment because it has been spent on something else. Another type of opportunity cost occurs when a company canÂ’t expand in a certain area because expansion is already occurring in one region and the companyÂ’s resources would be stressed.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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