Licensing

Definition:

Arrangement in which a local firm in the host country produces goods in accordance with another firm's (the licensing firm's>) specifications; as the goods are sold, the local firm can retain part of the earnings.

Investing Essentials


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

Term of the Day

Negative convexity

A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may... Read More

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