Answer:
Margin of safety
Explanation:
The margin of safety refers to an investment concept from which an individual buys shares only after that market value is considerably under their intrinsic worth. In other terms, when an assets market price is considerably under the intrinsic worth calculation, the gap is really the safety margin.
Since investors can set a safety margin in compliance with their very own risks expectations, purchasing securities while this gap is present makes it possible to make an investment with minimum risk of loss.
The margin of safety relates in accounting to the distinction among actual revenue and break-even sales. Executives can use the safety margin to determine how often sales can go down in front of a corporation or a project is uneconomic.
