Meaning COST OF CARRY: Out-of-pocket costs incurred while an investor has an investment position. Examples include interest on long positions in margin account, dividend lost on short margin positions, and incidental expenses. Related: Net financing cost
More terms such as Cost of carry in Dictionary C.
- Definition Conversion Parity/Value:
- Examples convertible securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on the market value of the cost of carry definition.
- Definition Counterpart Items:
- Examples payments, counterpart items are analogous to unrequited transfers in the current account. They arise through the double-entry system in balance of payments accounting and refer to adjustments in cost of carry explain.
- Definition Commodity:
- Examples A commodity is food, metal, or another fixed physical substance that investors buy or sell, usually via futures contracts cost of carry what is.
- Definition Charitable Remainder Trust:
- Examples trust that pays income to a designated person or persons until the grantor's death, when the income is passed on to a designated charity. A charitable lead trust by contrast allows the charity cost of carry meaning.
- Definition Clientele Effect:
- Examples tendary of funds or investments to be followed by groups of investors who have a simular preferences that the firm follow a particular financing policy, such as the amount of leverage it uses cost of carry abbreviation.
