Meaning SYNTHETICS: Customized hybrid instruments created by blending an underlying price on a cash instrument with the price of a derivative instrument. It is a combination of security holdings that mimics the price movement of another single security (i.e., synthetic call: long position in a stock combined with a put on that position; a protected long sale; synthetic put: short position in a stock combined with a call on that position; a protected short sale)
More terms such as Synthetics in Dictionary S.
- Definition Sales-Type Lease:
- Examples The leasing out of a firm's own equipment, such as a printing company leasing its own presses, thereby competing with an independent leasing company synthetics definition.
- Definition Swiss Electronic Bourse (EBS):
- Examples Computer linking system between the former stock exchange trading floors in Zurich, Geneva, and Basel, Switzerland so that trades can be carried out among traders on all three of the trading floors synthetics explain.
- Definition Supermajority:
- Examples Provision in a company's charter requiring a majority of, say, 80% of shareholders to approve certain changes, such as a merger synthetics what is.
- Definition Split-Coupon Bond:
- Examples A bond that begins as a zero-coupon bond paying no interest and converts to an interest paying bond on a future date synthetics meaning.
- Definition Secondary Distribution/Offering:
- Examples previously issued securities held by large investors, usually corporations or institutions, as distinguished from a primary distribution, where the seller is the issuing corporation. The sale is synthetics abbreviation.
