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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With N
  5. Normal Profits

Normal Profits

Definition of 'Normal Profits'

A company is said to be making Normal Profits when economic profits are zero.

Its accounting profits just pay the opportunity cost of the owners money and time.

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Related Terms

Accelerated DepreciationAdditional Voluntary ContributionsContangoNormal GoodCarried InterestClassical Tax SystemBonusCapital GainsCapital GearingCatch UpCompany TaxationCorporation TaxCyclical IndustriesDefensive IndustriesDividend CoverDividend PolicyEarn-OutEBITIncome GearingJoint Stock Enterprise

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