Vocab Bloom Hub

margin of safety

/ˈmɑːrdʒɪn əv ˈseɪfti/

1 entry

phrase

/ˈmɑːrdʒɪn əv ˈseɪfti/C1formalbusiness
  • ruКонцепция, обозначающая разницу между внутренней стоимостью актива и его рыночной ценой, или запас прочности, создаваемый для учёта неопределённости, риска или ошибок в различных областях, таких как инвестирование, инженерия или управление безопасностью.

A concept referring to the difference between the intrinsic value of an asset and its market price, or the buffer or extra capacity allowed to account for uncertainty, risk, or error in various fields such as investing, engineering, or safety management.

  1. Financial risk bufferC1formal

    The difference between the intrinsic value of an asset and its market price, used to minimize investment risk.

    ruЗапас прочности

    • Value investors always look for a large margin of safety before buying stocks.
    • He calculated the margin of safety to ensure the investment was secure.
    • A margin of safety protects against unexpected market downturns.
  2. Engineering safety limitC1formal

    The capacity of a system or structure to withstand loads beyond expected maximum conditions.

    ruЗапас прочности

    • The bridge was designed with a high margin of safety to handle extreme weather.
    • Engineers must ensure a sufficient margin of safety in all load-bearing structures.
    • The margin of safety in the aircraft's design prevents catastrophic failure.