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