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TeachMeFinance.com Absorbed -- In business, this means that an item of expense has not been passed on entirely or partly to the consumer. It could also relate to a case of acquisition and merger . In cost accounting, absorbed costs are indirect costs of manufacture such as taxes, property rents and interest payments. See also direct overhead. In finance, absorption happens when in the making of a financial statement an account is merged with linked accounts and no longer is identifiable as a separate account. Also termed absorption account or adjunct account. In transactions of securities, an issue totally sold to the public by an underwriter is said to be absorbed. This, however, depends on matching commitments to buy and sell. The absorption point is attained in the market when it can no longer take in more securities without price change. historic definition... Absorbed -- When an issue of stock or bonds has passed into the hands of the public it has been absorbed ; and when the general reselling of it has ceased it has become assimilated or digested. Also, when a block of stock held speculatively has been sold it has been absorbed by the market ; and when a settled price for it has been established it has been assimilated or digested. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.