portfolio insurance

portfolio insurance
= portfolio protection
The use of a financial futures and options market to protect the value of a portfolio of investments. For example, a fund manager may expect the general level of prices to fall on the stock exchange. The manager could protect the portfolio by selling futures contracts, which could then be bought back at a profit if the market falls. Alternatively, the manager could establish the value of the portfolio at current prices by buying put options, which would provide the opportunity to benefit if there was a rise in the general level of prices.

Accounting dictionary. 2014.

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  • portfolio insurance — portfolio protection The use of a financial futures and options market to protect the value of a portfolio of investments. For example, a fund manager may expect the general level of prices to fall on the stock exchange. The manager could protect …   Big dictionary of business and management

  • Portfolio Insurance — 1. A method of hedging a portfolio of stocks against the market risk by short selling stock index futures. 2. Brokerage insurance such as the Securities Investor Protection Corporation (SIPC). 1. This hedging technique is frequently used by… …   Investment dictionary

  • portfolio insurance — A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy s goal is to ensure that the value of the portfolio does not fall below a certain level. Bloomberg Financial Dictionary Method that… …   Financial and business terms

  • Portfolio insurance — A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy s goal is to ensure that the value of the portfolio does not fall below a certain level. The New York Times Financial Glossary …   Financial and business terms

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  • Constant Proportion Portfolio Insurance — Die Constant Proportion Portfolio Insurance (CPPI) ist eine dynamische Portfolio Absicherungsstrategie. Inhaltsverzeichnis 1 Geschichte 2 Grundkonzept 3 Literatur 4 Weblinks …   Deutsch Wikipedia

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  • portfolio protection — portfolio insurance …   Accounting dictionary

  • Portfolio Selection — ist der Titel einer Veröffentlichung des US amerikanischen Ökonomen Harry M. Markowitz aus dem Jahr 1952 und bezeichnet seither ebenso auch die darin von ihm erstmals entwickelte Theorie zur Portfolio Auswahl. Seine Arbeit war zum Zeitpunkt Ihres …   Deutsch Wikipedia

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