Fluctuation limit

Definition:

The limit created by the commodity exchange that halts trading on a future if the price of the future changes, in either direction, more than a previously set amount. Also called daily price limit.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Payout ratio

Generally, the proportion of earnings paid out to the common stockholders as dividends. Morespecifically, the firm's cash dividend divided by the firm's earnings in the same reporting period.

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