Portfolio turnover rate

Definition:

For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

Investing Essentials


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

Term of the Day

Deferred compensation

An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.

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