Sentences with phrase «market value of their underlying assets»

They only unwind and take losses if the market value of the underlying assets would drop down to a threshold level, say, around 90 % -94 % of par.

The creation and redemption mechanisms help ETF shares trade at a price close to the market value of their underlying assets.

With CFDs, you only have to put in a fraction of the market value of the underlying asset when making a trade, sometimes as little as 1 %.

However, because of investment fluctuations, and also because of the expenses incurred when the policy is issued, this value may exceed the market value of the underlying assets.

Not exact matches

It's just dealing with a market where certain investors are temporarily willing to invest at prices that exceed the underlying value of the assets.

The GBTC trades like a closed - end - fund usually at a price that is substantially different than the value of the underlying asset, and does not possess the ability to create or redeem shares in the open market.

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.

The market price is the number most commonly quoted, including by most brokers; the value of the underlying assets is much less widely available.

Market price does not always accurately reflect the underlying value of the asset (see below).

There are three main kinds of derivatives on the commodities market — contracts made between two or more parties who agree on the value of the underlying asset: futures and forwards, options and OTC products.

Most of the large tracking error in the Vanguard MSCI U.S. Broad Market (VUS) was likely the result of currency hedging, but its annual report also cites «differences between the market price and net asset value of the underlying US domiciled Vanguard funds in which the ETF invests.&Market (VUS) was likely the result of currency hedging, but its annual report also cites «differences between the market price and net asset value of the underlying US domiciled Vanguard funds in which the ETF invests.&market price and net asset value of the underlying US domiciled Vanguard funds in which the ETF invests.»

Share prices can deviate from the fund's net asset value of the underlying securities it holds, as market forces of supply and demand can lead to a trading discount or premium.

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.

It is worth noting that there may be a difference between an ETF's market capitalization and the net asset value (NAV) of its underlying securities.

Investing in commodities indices that are constructed using long or short positions in futures on physical commodities whose value is determined based on the price of the underlying physical commodity plus yield and that trade on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining commodities exposure and can provide a means for market participants to access the five components of the returns of the asset class.

This means they derive their market worth from the value of underlying assets.

The intrinsic value is an easy calculation - the market price of an option minus the strike price - and it represents the profit that the holder of the option would enjoy if he or she exercised the option, took delivery of the underlying asset and sold it in the current marketplace.

Since those have no underlying stocks to speak of that create any meaningful measure of net asset value, the market tacitly acknowledges Berkshire must be valued only by its ability to create income.

As with all CEF investments, there is an additional potential for profit besides the increase in value of the underlying assets per share (also called Net Asset Value or NAV), which is the improvement of their market price relative to theirvalue of the underlying assets per share (also called Net Asset Value or NAV), which is the improvement of their market price relative to theirValue or NAV), which is the improvement of their market price relative to their NAV.

Consider an over-the-counter (OTC) option sold (written) by Bank A to Customer C. Market risk refers to the fluctuating value of the option; if it is daily - mark - to - market, its value will be a function largely of the underlying asset price but also several other risk faMarket risk refers to the fluctuating value of the option; if it is daily - mark - to - market, its value will be a function largely of the underlying asset price but also several other risk famarket, its value will be a function largely of the underlying asset price but also several other risk factors.

«As of that date, institutional prime money - market funds will be required to float their net asset value, based on the market value of the underlying investments,» he warns.

But what we are mostly concerned with is the change in the value of the underlying assets and to what extent this has been reflected in the market price.

(Hint: markets that have a high level of transactions relative to the underlying asset value have a lot of speculative «noise traders.»)

These fees are based on the daily net asset value of the annuity's underlying investment portfolios, which can change every day as the market shifts.

While closed - end funds often trade at a premium or discount because they have a fixed number of shares outstanding, market makers work with authorized participants (APs) to strive to keep the price of ETF shares close to fair value (i.e., in line with the ETF's underlying net asset value (NAV)-RRB-.

It's also important to keep in mind that because mutual fund assets are publicly - traded, the net asset value of its shares can be highly correlated to the fluctuations of the public market rather than tied solely to the inherent value of its underlying assets.

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.

If this is the case, he may not care too much about market pricing of the units, as management fees are based on underlieing asset value, not market prices.

-- If assets are mostly intangible or have an underlying / more permanent intrinsic value, but current profitability's weak, the market can be a v poor judge of valuation.

The actual percentage of the market value that you will be asked to put in will vary for different CFD providers, and for different underlying assets.

-- If a company's assets are intangible / have an underlying permanent value, but current profitability's weak, the market's often a poor judge of value.

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 agree that market forces can affect the price of shares vs. the underlying asset value; it's interesting however that all except one of the ETFs is LOWER than the expect NAV based on the index performance.

With the launch, investors who participate in the fund will own shares meant to reflect the value of the underlying assets, allowing them to achieve what BitWise argues is a broad exposure to the cryptocurrency market.

As some of Grayscale's previous fund can attest, the shares may trade at a substantial premium over the value of of the underlying asset if quoted on any secondary market in the future.