Active Retention
Categories: Investing, Stocks, Bonds, Retirement
Didn't you guess that the salt in all those potato chips would...do its thing? Yeah. Enjoy the eight minute 3 a.m. wiz.
Active Retention also refers to the setting aside of dough to cover expected losses or returns from a given business activity. Like...you sell the product Bag O' Glass to little kids. Fun shards to cut things with. You'll want to set aside a lot of dough for the ensuing lawsuits. That would be Active Retention of coverage. The other end of the rainbow is Passive Retention, where nothing is set aside other than a lot of Band-Aids.
