Financial Dictionary

This dictionary contains:
24549
financial terms

Downside protection




Downside protection

Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option.

RELATED TERMS
--------------------------------------

Covered
A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security.

Call
An option that gives the holder the right to buy the underlying futures contract.

Cushion
In the context of project financing, the extra amount of net cash flow remaining after expected debt service.

Loss
The opposite of gain.

Price
The cost of a good or service to the consumer.

Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.

Security
Piece of paper that proves ownership of stocks, bonds, and other investments.

Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.



SIMILAR TERMS
--------------------------------------

Down round
Refers to a round of venture capital financing that is raised at a lower firm valuation than the previous round.

Down volume
When a stock decreases in value on a particular day, the volume in that stock is considered down volume.

DOWNER EDI Limited
DOWNER EDI Limited is a large Australian company in the field of commercial services and supplies. Their Australian Stock Exchange (ASX) code is DOW.

DOWNEY Credit Union
DOWNEY is a credit union with head office in DOWNEY, CA

Downey Financial
Downey Financial is a top United States corporation in the field of banking, and its estimated market value is 1,750 million US dollars.

Downgrade
A negative change in ratings for a stock, or other rated security.

DOWNRIVER COMMUNITY Credit Union
DOWNRIVER COMMUNITY is a credit union with head office in ECORSE, MI

Downside risk
The risk that a security will decline in value including the implications of risk.

Downsizing
A company's reduction in the number of employees, number of bureaucratic levels, and overall size in an attempt to increase efficiency and profitability.

Downstream
The transfer of corporate activity from the larger parent to the smaller subsidiary.

Downtick
A trade in a particular stock at a price lower than the trade immediately preceding it. In U.S., one cannot sell a stock short on a downtick.

Downturn
The transition point between a rising, expanding economy to a falling, contracting one.



PREVIOUS AND NEXT TERMS
--------------------------------------

Doubling option
A sinking fund provision that may allow repurchase of twice the required number of bonds at the sinking fund call price.

Dow Jones Industrial Average
The best known U.S. index of stocks, a barometer of how shares of the largest US companies are performing.

Down round
Refers to a round of venture capital financing that is raised at a lower firm valuation than the previous round.

Down volume
When a stock decreases in value on a particular day, the volume in that stock is considered down volume.

Downgrade
A negative change in ratings for a stock, or other rated security.

Downside protection

Downside risk
The risk that a security will decline in value including the implications of risk.

Downsizing
A company's reduction in the number of employees, number of bureaucratic levels, and overall size in an attempt to increase efficiency and profitability.

Downstream
The transfer of corporate activity from the larger parent to the smaller subsidiary.

Downtick
A trade in a particular stock at a price lower than the trade immediately preceding it. In U.S., one cannot sell a stock short on a downtick.

Downturn
The transition point between a rising, expanding economy to a falling, contracting one.

We thank you for using the Financial Dictionary to search for Downside protection. If you have a better definition for Downside protection than the one presented here, please let us know by making use of the suggest a term option. This definition of Downside protection may be disputed by other professionals. Our attempt is to provide easy definitions on Downside protection and any other medical topic for the public at large.
 

This dictionary contains 24549 terms.







downsideprotection / ownside protection / dwnside protection / donside protection / dowside protection / downide protection / downsde protection / downsie protection / downsid protection / downsideprotection / downside rotection / downside potection / downside prtection / downside proection / downside protction / downside protetion / downside protecion / downside protecton / downside protectin / downside protectio / ddownside protection / doownside protection / dowwnside protection / downnside protection / downsside protection / downsiide protection / downsidde protection / downsidee protection / downside protection / downside pprotection / downside prrotection / downside prootection / downside prottection / downside proteection / downside protecction / downside protecttion / downside protectiion / downside protectioon / downside protectionn / eownside protection / rownside protection / fownside protection / vownside protection / cownside protection / xownside protection / sownside protection / wownside protection / d9wnside protection / d0wnside protection / dpwnside protection / dlwnside protection / dkwnside protection / diwnside protection / d8wnside protection / do2nside protection / do3nside protection / doenside protection / dodnside protection / dosnside protection / doanside protection / doqnside protection / dowbside protection / dowhside protection / dowjside protection / dowmside protection / dow side protection / downwide protection / downeide protection / downdide protection / downxide protection / downzide protection / downaide protection / downqide protection / downsde protection / downsiee protection / downsire protection / downsife protection / downsive protection / downsice protection / downsixe protection / downsise protection / downsiwe protection / downsid3 protection / downsid4 protection / downsidr protection / downsidf protection / downsidd protection / downsids protection / downsidw protection / downside 0rotection / downside -rotection / downside [rotection / downside ;rotection / downside lrotection / downside orotection / downside 9rotection / downside p4otection / downside p5otection / downside ptotection / downside pgotection / downside pfotection / downside pdotection / downside peotection / downside p3otection / downside pr9tection / downside pr0tection / downside prptection / downside prltection / downside prktection / downside pritection / downside pr8tection / downside pro5ection / downside pro6ection / downside proyection / downside prohection / downside progection / downside profection / downside prorection / downside pro4ection / downside prot3ction / downside prot4ction / downside protrction / downside protfction / downside protdction / downside protsction / downside protwction / downside protextion / downside protestion / downside protedtion / downside proteftion / downside protevtion / downside prote tion / downside protec5ion / downside protec6ion / downside protecyion / downside protechion / downside protecgion / downside protecfion / downside protecrion / downside protec4ion / downside protecton / downside protecti9n / downside protecti0n / downside protectipn / downside protectiln / downside protectikn / downside protectiin / downside protecti8n / downside protectiob / downside protectioh / downside protectioj / downside protectiom / downside protectio /