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A "Margin of Safety" (MOS) is a fundamental risk management principle, often used in investing and business, that creates a buffer against errors, volatility, or unforeseen negative events. In investing, it represents the discount between an asset's market price and its intrinsic value, while in business, it measures the amount sales can drop before a loss is incurred. For a technical breakdown and to view the calculation, read the Investopedia Guide . Margin of Safety