Meaning RISKLESS TRANSACTION: A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%
More terms such as Riskless transaction in Dictionary R.
- Definition Return-To-Maturity Expectations:
- Examples expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity riskless transaction definition.
- Definition Risk-Adjusted Return:
- Examples from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark riskless transaction explain.
- Definition Rich:
- Examples Term for a security whose price seems too high in light of its price history riskless transaction what is.
- Definition Ratings:
- Examples An evaluation of credit quality of a company's debt issue by Moody's, S;P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment riskless transaction meaning.
- Definition Remainderman:
- Examples One who receives the principal of a trust when it is dissolved riskless transaction abbreviation.
