Sentences with phrase «in value of the underlying security»

The value of each investment option will vary from day to day, reflecting changes in the value of the underlying securities within each investment strategy.

DDs differ from pure straddle positions in that gains in the value of the underlying security above the range of the straddle payoff are generally capped, and losses in the value of the underlying security beyond that range lead to losses for the DD investor, including perhaps a total loss of principal.

Not exact matches

If ever there was a disconnect between underlying reality and what is happening in financial markets, it is the boom in Puerto Rican debt which has nearly doubled the value of some of its debt securities over the last few months.

In a rising interest rate environment, the value of mortgage backed securities may be adversely affected when payments on underlying mortgages do not occur as anticipated.

Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

Those revenues easily cover the cost of providing that liquidity, which is the cost of understanding the psychology of the passive investors, so as to anticipate their net flows, and also the cost of determining the fair value of the underlying securities, to know what prices he can prudently pay for them, in case he gets stuck holding them.

However, they are generally equally or more secure when compared to stable value funds as their underlying investments are in large part made up of U.S. government securities.

Authorized participants receive the same value of the underlying security in the fund after selling shares.

Delta not only indicates how much the value of the option will change in line with a change in the underlying security, but it also represents the probability that an option will expire in the money.

While a stock split will adjust the price of the underlying security of an option, the option is adjusted so that any changes in price due to the split do not affect the value of the option.

The shares of the Spain Fund, Inc., a closed - end mutual fund investing in publicly traded Spanish securities, were bid up in price from approximately net asset value (NAV)-- the combined market value of the underlying investments divided by the number of shares outstanding — to more than twice that level.

Arbitrage might take advantage of imbalances in prices between two markets for the same security (such as a domestic and a foreign market) or between two types of securities whose value depends on the same underlying security (such a stock and a bond convertible into the stock).

The NAV represents the per - unit value of the underlying securities, so in theory it should be what investors are willing to pay for one share of the ETF.

In fact there is no way of determining whether any market is efficient or not in measuring underlying values unless the analyst understands, and analyzes, the specific securities that are the components of that specific markeIn fact there is no way of determining whether any market is efficient or not in measuring underlying values unless the analyst understands, and analyzes, the specific securities that are the components of that specific markein measuring underlying values unless the analyst understands, and analyzes, the specific securities that are the components of that specific market.

Because options contracts guarantee the right to trade an asset at a specific price for a certain period of time, their price depends in large part on the perceived value of the underlying security and the length of time before the option expires.

A bond mutual fund's share price is always exactly its net asset value, or the value of the underlying securities in its portfolio.

On the other hand, thanks to the arbitrage mechanism that all ETFs have and similar to open - end mutual fund valuation, the value of an ETF as traded stays very close to the net asset value of the underlying securities in the ETF, with a spread of around 1 % if any.

Another problem with ETFs is they can trade at a premium above the underlying market value of the securities contained in the fund, and at other times they can trade at a discount.

What he meant was that in the short - term security prices fluctuate purely based on the opinions of market participants, and can deviate widely from the underlying business values.

The purchase of put or call option contracts allows the trader to profit if the underlying security drops in value (puts) or increases (calls).

● The main risk of real estate related securities is that the value of the underlying real estate may decrease in value.

The difference between this average value and the strike price is paid out to the holder of the option in cash, which is rather unique since it doesn't involve a transaction of the underlying security.

As you are aware, debt funds in India are marked to market, that is their NAV is determined on a daily basis by using the value of the underlying securities / investments.

Selling a call to make 5 % in a month is of little value if the underlying security drops by 30 %.

The main underlying principle of value investing is that you should invest in undervalued securities because they alone offer a margin of safety.

Klarman explains that value investing is the strategy of investing in securities trading at an appreciable discount from underlying value.

Selling covered call or stock index options will limit the Fund's gain, if any, on its underlying securities and The Fund continues to bear the risk of a decline in the value of its underlying stocks.

During 2007, the value of the Company's credit derivative contracts were affected predominantly by changes in credit spreads of the underlying reference obligations» collateral and ratings downgrades of securities backing collateralized debt obligations.

«A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human error, bad luck, or extreme volatility in a complex, unpredictable and rapidly changing world.»

The smaller the margin requirement in relation to the underlying value of the security futures contract, the greater the leverage.

In both cases, fixed income ETF prices can be different than the perceived value of their underlying securities.

In most cases, even the intraday prices correlate to the actual value of the underlying securities.

The point here is that people, mostly financial advisers, think they have magic powers and can tell if a very large basket of stocks in an ETF is currently overpriced or underpriced relative to the value of the underlying securities it holds.

Warren Buffett had this to say about Walters Schloss: «He knows how to identify securities that sell at considerably less than their value to a private owner; And that's all he does... He owns many more stocks than I do and is far less interested in the underlying nature of the business; I don't seem to have very much influence on Walter.

Authorized participants may wish to invest in the ETF shares for the long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

The market value of the securities underlying a when - issued purchase, forward commitment to purchase securities, or a delayed settlement and any subsequent fluctuations in their market value is taken into account when determining the market value of a Fund starting on the day a Fund agrees to purchase the securities.

Because the Funds may invest in underlying ETFs that hold portfolio securities primarily listed on foreign exchanges, and these exchanges may trade on weekends or other days when the underlying ETFs do not price their shares, the value of some of a Fund's portfolio securities may change on days when you may not be able to buy or sell Fund shares.

In the case of TIPS, the market value of the security would still be expected to drop even though the underlying principal value, on which the semiannual interest payment and inflation adjustment is based, would remain the same.

That means it requires a small dollar amount of them to hedge a much larger dollar value position in an underlying security.

In addition, a liquid secondary market for particular options, whether traded over-the-counter or on an exchange, may be absent for reasons which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed by an exchange on opening transactions or closing transactions or both; trading halts, suspensions or other restrictions may be imposed with respect to particular classes or series of options or underlying securities or currencies; unusual or unforeseen circumstances may interrupt normal operations on an exchange; the facilities of an exchange or the Options Clearing Corporation may not at all times be adequate to handle current trading value; or one or more exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that exchange (or in that class or series of options) would cease to exist, although outstanding options that had been issued by the Options Clearing Corporation as a result of trades on that exchange would continue to be exercisable in accordance with their termIn addition, a liquid secondary market for particular options, whether traded over-the-counter or on an exchange, may be absent for reasons which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed by an exchange on opening transactions or closing transactions or both; trading halts, suspensions or other restrictions may be imposed with respect to particular classes or series of options or underlying securities or currencies; unusual or unforeseen circumstances may interrupt normal operations on an exchange; the facilities of an exchange or the Options Clearing Corporation may not at all times be adequate to handle current trading value; or one or more exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that exchange (or in that class or series of options) would cease to exist, although outstanding options that had been issued by the Options Clearing Corporation as a result of trades on that exchange would continue to be exercisable in accordance with their termin certain options; restrictions may be imposed by an exchange on opening transactions or closing transactions or both; trading halts, suspensions or other restrictions may be imposed with respect to particular classes or series of options or underlying securities or currencies; unusual or unforeseen circumstances may interrupt normal operations on an exchange; the facilities of an exchange or the Options Clearing Corporation may not at all times be adequate to handle current trading value; or one or more exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that exchange (or in that class or series of options) would cease to exist, although outstanding options that had been issued by the Options Clearing Corporation as a result of trades on that exchange would continue to be exercisable in accordance with their termin which event the secondary market on that exchange (or in that class or series of options) would cease to exist, although outstanding options that had been issued by the Options Clearing Corporation as a result of trades on that exchange would continue to be exercisable in accordance with their termin that class or series of options) would cease to exist, although outstanding options that had been issued by the Options Clearing Corporation as a result of trades on that exchange would continue to be exercisable in accordance with their termin accordance with their terms.

In discussing the concept of margin of safety he says: «A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human error, bad luck, or extreme volatility in a complex, unpredictable, and rapidly changing world.&raquIn discussing the concept of margin of safety he says: «A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human error, bad luck, or extreme volatility in a complex, unpredictable, and rapidly changing world.&raquin a complex, unpredictable, and rapidly changing world.»

The AP delivers a certain amount of underlying securities and receives the exact same value in ETF shares, priced based on their net asset value (NAV), not the market value at which the ETF happens to be trading.

I think the warrants of the big banks are some of the best investment opportunities in this market because of the quality of the underlying businesses, the value of the underlying common stocks, and the long - dated nature of the security itself.

If demand for the ETF goes down, and the price drops below the price of its underlying securities, the AP can reduce the number of shares in the market through a process called «redemption»: the AP buys the cheaper ETF shares, unbundles them, and sells the higher - valued securities back into the market until the prices realign.

In exchange, APs receive the same value in the underlying securities of the funIn exchange, APs receive the same value in the underlying securities of the funin the underlying securities of the fund.

However, in return for the option premium, a fund accepts the risk that it may be required to purchase the underlying securities at a price in excess of the securities» market value at the time of purchase.

• By attempting to extract security deposits or the performance of abandonment obligations on a transfer of AER licenses, the AER was in effect transferring the proprietary value in the bankrupt estate from the underlying real property assets of Redwater (which were interests in its oil and gas properties) to the AER licenses, contrary to the scheme of distribution contemplated under the Bankruptcy and Insolvency Act.