accretion

Definition

The gradual increase in value of a bond as it approaches maturity, or the increase in earnings per share following an acquisition. Basically, when numbers get bigger and finance people get to feel smart about predicting it.

Example Usage

The acquisition was accretive to earnings, meaning it actually made the stock worth more rather than destroying value like most mergers.

Origin

From Latin 'accretio' meaning 'growth,' entered finance terminology in mid-20th century

Fun Fact

The opposite is 'dilution,' which is what happens when your company issues so many new shares that yours become worth less—democracy in action, capitalism style.

Source: Investment banking and fixed income terminology

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