Forward sale

Definition:

A method for hedging price risk that involves an agreement between a lender and an investor to sell particular kinds of loans at a specified price and future time.

Investing Essentials


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

Term of the Day

Going away

The type of bond purchased by dealers for immediate resale to investors, as opposed to purchasing a bond to hold for some amount of time, and then reselling it at a future date.

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