When an investor is analyzing and comparing options, opportunity cost reflects the potential benefits that the investor gives up by electing against some of the options. Read on to learn about the ...

Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

Opportunity cost is the cost of what is given up when choosing one thing over another. In investing, the concept helps show the cost of an investment choice by showing the trade-offs for making that ...