Related Words

Transaction Demand (For Money): The delivery of a security by a seller and its acceptance by the buyer.

Price Elasticity Of Demand: The relationship between the change in the price of a commodity and the corresponding change in the quantity that is sold. If a small change in the price is accompanied by a relatively large . . . View Full Definition

Precautionary Demand (For Money): The need to meet unexpected or extraordinary contingencies with a buffer stock of cash.

Riskless Transaction: A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and m . . . View Full Definition

Opening Transaction: Applies to derivative products. (1)Buy or sell transaction that creates a position out of a flat one (writing an option short or buying an option long). Antithesis of closing transaction. (2 . . . View Full Definition

Round-Trip Transactions Costs: Costs of completing a transaction, including commissions, market impact costs, and taxes.

Speculative Demand (For Money): Purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss. A profitable strategy over the long term if undertaken by . . . View Full Definition

Open Transaction: A transaction that is not completed at the end of the accounting period: a purchase that has not yet been paid for or a sale where payment is yet to be collected when the accounting period ends.

Money Market Demand Account (MMDA): An account that pays interest based on short-term interest rates.

Matched Sale Transaction: Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells government securities to a nonbank dealer against payment in federal funds. The agreeme . . . View Full Definition