For example: I bought an office building because you could go out and actually offer the bank sixty cents on the dollar.
2007-10-25 17:28:29 · 3 answers · asked by originalscent 1 in Business & Finance ➔ Investing
Sorry...this is an accidental double post.
2007-10-25 17:40:51 · update #1
It means that even though an asset has been valued at a certain price the bank is willing to sell it for less (for whatever reason) to make a fast sell. In your example, maybe the office building was valued at $100,000, but the bank accepted $60,000 for it. You paid 60 cents on the dollar.
2007-10-25 17:35:36 · answer #1 · answered by Uncle Pennybags 7 · 1⤊ 0⤋
It basically means that you are getting a 40% discount on the true market value of an item. You are paying .60 cents for what it would normally cost you/or anyone else 1 dollar to purchase.
2007-10-25 17:34:57 · answer #2 · answered by tremtan 1 · 1⤊ 0⤋
it means that for every dollar you get 60 cents
2007-10-25 17:36:05 · answer #3 · answered by Caesar 3 · 0⤊ 0⤋