Amortized Value

Amortized Value - The amortized value of any stock exchange security, which is determined by the process of amortization. Amortization is understood to mean the gradual depletion of a liability from the company's portfolio, such as a mortgage, loan, or lien against the company's property. The reduction of the liability occurs when the company makes regularly scheduled payments over a time specified in an agreement or contract. These payments are usually calculated to pay off both the principal owed and any interest that is occurred during the specified period. Just like when you buy a house through a bank?it is amortized to be paid back by a specific date.