Normal investment practice

Definition:

The investment history of a customer, which is used as a benchmark to test the bona fide public offerings requirement of the allocation of a hot issue.

Investing Essentials


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

Term of the Day

Liquid

In context of securities, easily traded or converted to cash. In context of a corporation, the state of having enough cash and cash equivalents to cover short-term obligations.

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