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.

Whether it means investing in one stock over another or simply opting to study for a big math exam instead of meeting a friend for pizza, opportunity cost pervades every facet of life. That’s because ...