From 11:00PM PDT on Friday, July 1 until 5:00AM PDT on Saturday, July 2, the Shmoop engineering elves will be making tweaks and improvements to the site. That means Shmoop will be unavailable for use during that time. Thanks for your patience!
We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Ad Valorem


This here is a fancy Latin phrase for property tax.

"Valorem" means "value" and "ad valorem" means "according to value"—which you might know if you went to Latin class or survived catechism. Given what it does, you'd think it would have been named minus valorem.

Ad valorem can also be levied on imported stuff like a duty. In either case, it helps keep the coffers of your local or state governments fuller.