LADDER Definition

Bookmark and Share

LADDER is a form of diversification in which investments with widely varying maturities are held within an invest­ment portfolio. Spreading investments over a range of maturities reduces interest rate risk on reinvestment by averaging out interest rate cycles. This strategy assures a continuous cash flow over time with some potential sacrifice of optimum total return.

Learn new Accounting Terms

CONSTANT DOLLAR is when the dollar amount is adjusted for inflation.

CONTANGO is the commission paid by a buyer for the postponement of a transaction on a stock exchange when prices for future delivery are higher than those for cash or spot transactions. The opposite is backwardation.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.